IRS Will Soon Target Small Businesses Making Less Than $200K, Tax Experts Say
Tax experts are sounding the alarms about Biden’s new 87,000 IRS agents.
They believe that despite the White House’s claims, the Inflation Reduction Act will, in fact, target small business owners earning less than $200,000 per year.
The War on Small Business continues…
"80% of new IRS revenue will come from small businesses earning under $200K: tax experts "
By @LJMoynihan; h/t @JesseKellyDC https://t.co/VJTj8m6YCB
— Carol Roth (@caroljsroth) August 20, 2022
The nonpartisan watchdog Joint Committee on Taxation estimates that “between 78% and 90% of the estimated additional $200 billion the IRS will collect will come from small businesses making less than $200,000 annually.”
Per The New York Post:
Just 4% to 9% would come from businesses making north of $500,000 a year — meaning the legislation is in sharp contrast to President Biden’s longstanding claim that he wouldn’t raise taxes on anyone making less than $400,000.
“The IRS will have to target small and medium businesses because they won’t fight back,” Joe Hinchman, executive vice president at National Taxpayers Union Foundation, told The Post. “We’ve seen this play out before … the IRS says ‘We’re going after the rich’ but when you’re trying to raise that much money, the rich can only get you so far.”
Again, this completely contradicts what President Biden has been saying about the new Inflation Reduction Act. Which “throws an extra $80 billion to the IRS to improve the agency’s collection of under-reported income.”
As Biden has claimed: only the ultra-wealthy will be targeted by the IRS after this massive increase in budget. And this new bill will not hurt lower- and middle-income Americans.
However, as new video comes out showcasing the training of these new agents, most scenarios talked about and practiced involve people who failed to report properly – WATCH:
Notice the scenario in this IRS recruiting program is “taking down a landscape business owner who failed to properly report how he paid for his vehicles,” not “taking down a billionaire who uses the corporate jet for private trips.”pic.twitter.com/QXlHmDCoWb
— Thomas Massie (@RepThomasMassie) August 19, 2022
“Most small business aren’t doing anything wrong,” Daniel Bunn, executive vice president at the Tax Foundation, told The Post. “We don’t make the tax code simple and the complicated tax code makes it difficult for small business owners to comply with all the requirements.”
“Anytime you get a IRS letter, it could take months or years to get it settled — we’re talking many thousands of dollars to address,” Bunn added. “Large companies have constant reviews and lawyers going through everything … small business doesn’t have the resources to fight back in the way.”
So while the IRS gets bigger and builds up its resources to help recoup funds, Americans are rightfully worried about the turmoil and headaches that are likely to come as a result of this increase in budget and capacity.
The White House, of course, is dismissing all those concerns.
Pres. Biden says new bill will have "the wealthy and big corporations finally begin to pay part of their fair share," adding "no one earning less than $400,000 a year will pay a penny more in federal taxes." https://t.co/pFIxs4vauG pic.twitter.com/s0rVqFZtNF
— ABC News (@ABC) August 16, 2022
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