The president’s plan to scrutinize the tax returns of the wealthy may also target small businesses.
President Joe Biden announced a plan to increase the Internal Revenue Service’s funding by $80 billion over the next decade.
The additional funding would be invested in staffing and technology for enforcement and tax collection, which would bring in an estimated $700 billion over the next 10 years.
While this plan has been billed as one focused on increasing tax compliance among the nation’s wealthiest taxpayers, some financial experts fear the increased audits and scrutiny will likely affect small-business owners.
Financial experts interviewed by CNBC said they expect the IRS will focus on cash businesses, such as restaurants and service-based companies. Small-business owners who individually earn more than $400,000 may also face audits.