IRS small business division to shift examination focus to S corporations

Tax Hot Topics - IRS small business division to shift examination focus to S corporationsThe IRS Small Business/Self-Employed (SB/SE) Division will likely move toward examining more business return categories, such as subchapter S corporations, and away from Form 1040 audits, a senior IRS official said May 6 in Washington.

Karen Schiller, the commissioner of SB/SE, said the division, which oversees businesses with $10 million or less in assets, is the primary beneficiary of new enforcement hiring by the IRS, and will focus more attention on S corporations. The IRS announced recently that it would hire several hundred new revenue agents. Currently, only 0.4% of the 4.6 million S corporation filings submitted each year are audited by SB/SE, Schiller said.

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