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Tax Fact #3: Small Business Owners Face A High Audit Risk

Fact: Small business owners are up to 940% more likely to be audited than W-2 wage-earners.

Business owners who are sole proprietors or single-member LLCs face a much higher risk of being audited than the average wage-earner. The IRS has targeted these taxpayers for increased scrutiny as it attempts to close the tax gap and reduce the federal deficit.

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