Proposal exposes small business owners to costly audits
WASHINGTON, D.C. (Oct. 14, 2021) – The National Federation of Independent Business (NFIB) sent a letter to congressional leaders opposing the Biden Administration’s proposal to require annual reporting to the Internal Revenue Services (IRS) of gross inflows and outflows from all businesses to pay for spending provisions of the Build Back Better Act.
“This proposal threatens the privacy of small business owners and exposes them to costly and burdensome audits,” said Kevin Kuhlman, NFIB Vice President of Federal Government Relations. “Small business owners are struggling with a tight labor market, rising inflation, supply chain disruptions, and the COVID-19 pandemic. It is not the time to subject small business owners to new reporting requirements that will violate their privacy and subject them to additional, unwarranted IRS scrutiny.”
The proposal would require annual reporting to the IRS of gross inflows and outflows from all business customers’ accounts above a de minimis threshold. NFIB is concerned the new reporting would result in the IRS targeting small business owners with costly and burdensome audits.
