Another Reason to Fear the IRS: Misclassification Crackdowns

Daniel Werfel, acting commissioner of the IRS, waits to start a House Appropriations subcommittee hearing on June 3 Photograph by Andrew Harrer/Bloomberg

Small business owners have reason to be wary of the Internal Revenue Service, given research that shows certain types of small companies (pdf), including sole proprietors, are more likely than their larger counterparts to be audited. Lately, it seems, there’s even more reason to fear the taxman.

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