There's no reason to think that certain small businesses were unfairly targeted by the IRS' auditing procedures, according to Daniel Werfel, the agency's acting commissioner. Speaking before the House Small Business Committee, Werfel explained that the IRS uses a computer program to look for warning signs when deciding which returns to audit. It also uses a random process to pick other returns for auditing. Neither industry nor geographic location increased a small business' chances of being audited, he said.

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