Is this next? Will salon owners start getting this letter? If so, it will add to the burden/cost of staying in business.
Small business owners across the country are receiving letters from the IRS questioning if they are reporting all of their cash income.
One letter the IRS sent is headlined, "Notification of Possible Income Underreporting." It notifies the business owner "your gross receipts may be underreported" and says they must complete a form "to explain why the portion of your gross receipts from non-card payments appears unusually low."
One lawmaker says the letter’s tone implies wrongdoing from the start. "The letter implies that this is a serious matter that could lead to assessments of additional tax, penalties and interest," says a letter sent to the IRS Friday by Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee.
Read more: http://www.foxnews.com/politics/2013/08/10/critics-question-irs-initiative-targeting-small-businesses/#ixzz2bazocabH
Small business owners across the country are receiving letters from the IRS questioning if they are reporting all of their cash income.
One letter the IRS sent is headlined, "Notification of Possible Income Underreporting." It notifies the business owner "your gross receipts may be underreported" and says they must complete a form "to explain why the portion of your gross receipts from non-card payments appears unusually low."
One lawmaker says the letter’s tone implies wrongdoing from the start. "The letter implies that this is a serious matter that could lead to assessments of additional tax, penalties and interest," says a letter sent to the IRS Friday by Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee.
Read more: http://www.foxnews.com/politics/2013/08/10/critics-question-irs-initiative-targeting-small-businesses/#ixzz2bazocabH