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<p>[QUOTE="medoraman, post: 1404544, member: 26302"]Very true. I was not describing a normal occurence, but rather after a subpoena has been obtained. However, these are very easy to obtain and the IRS has a very sharp focus on the "tax gap" for the last 5 years. Cash businesses are listed as the number one reason there is a tax gap, and as such is one of the highest priorities for enforcement action within the IRS.</p><p><br /></p><p>People may say "yeah there is a chance to get the random audit each year", but look who disproportionately gets these "compliance audits". They are highly skewed towards those who work with cash, especially large sums of untraceable cash. There is supposed to be less than 1% chance of being selected for one of these audits, yet my father who is an electrical contractor has been "lucky" three times. Once you are in one of these audits, the auditor could get a warrant in about 10 seconds from any Tax Court to ask to see the inventory.</p><p><br /></p><p>So I agree they cannot just waltz right in Doug, but in practical purposes I think its easier than you believe. Agents are scored on results, and with the push for tax gap coverage are being rewarded for documenting a closing of this gap. I really cannot go into it more than that.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1404544, member: 26302"]Very true. I was not describing a normal occurence, but rather after a subpoena has been obtained. However, these are very easy to obtain and the IRS has a very sharp focus on the "tax gap" for the last 5 years. Cash businesses are listed as the number one reason there is a tax gap, and as such is one of the highest priorities for enforcement action within the IRS. People may say "yeah there is a chance to get the random audit each year", but look who disproportionately gets these "compliance audits". They are highly skewed towards those who work with cash, especially large sums of untraceable cash. There is supposed to be less than 1% chance of being selected for one of these audits, yet my father who is an electrical contractor has been "lucky" three times. Once you are in one of these audits, the auditor could get a warrant in about 10 seconds from any Tax Court to ask to see the inventory. So I agree they cannot just waltz right in Doug, but in practical purposes I think its easier than you believe. Agents are scored on results, and with the push for tax gap coverage are being rewarded for documenting a closing of this gap. I really cannot go into it more than that. Chris[/QUOTE]
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