As Americans file their taxes and funnel more of their hard-earned dollars into government coffers, U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Small Business Committee, is slamming the Internal Revenue Service’s (IRS) new plan to increase tax enforcement efforts on small businesses earning more than $400,000.
In a letter to the IRS, Ranking Member Ernst writes, “According to data from the Statistics of U.S. Businesses under the U.S. Census Bureau, the average small business with approximately five employees has receipts of more than $424,000. It is abundantly clear that small businesses will bear the brunt of these enforcement efforts; not solely large corporations and the wealthiest taxpayers.
“Ongoing high inflation levels has created an unfair, hidden value-added tax on small businesses that have caused diminished margins…Now is simply not the time to place unnecessary burdens on our small businesses as they continue to grapple with recent economic challenges.
“Instead of commencing a witch hunt on small businesses by enhancing audit rates without justification, we should focus on tax solutions that promote small business growth and economic competitiveness.”
Read Ernst’s letter to IRS Commissioner Werfel here.