Newswise — WASHINGTON, D.C. (September 13, 2016) – Don Williamson, Executive Director of the Kogod Tax Policy Center and Eminent Professor of Taxation at American University, will testify before the House Small Business Committee hearing titled, “IRS Puts Small Businesses Through Audit Wringer” at 11:00 am on Wednesday, September 14, 2016.
The Committee will meet to examine how small business are being treated during the tax audit process, a process that is less regulated than large corporate tax audits. Also, the Committee will hear from expert tax professionals to gain understanding around the source of frustration and confusion on the part of small business tax payers.
Don Williamson will testify about the tax compliance burden small business owners carry. “The growth in IRS tax code complexity has reached an incomprehensible level to all except for those who devote their careers to studying it,” said Williamson. “Small businesses find they must employ a team of tax advisers to prepare their returns and ultimately represent their interests if the returns are audited.” Williamson found of more than 40,000 self-employed small business owners, more than 44% of respondents paid more than $200 for assistance in preparing their annual taxes.
Williamson will explain that the burden of compliance costs, including the often unnecessary examination of small business tax returns, arises not only because of the complexity of the tax law, but also because of basic inefficiencies in the selection of returns for audit as well as the correspondence to taxpayers selected for an audit. Due to these inefficiencies, small businesses have had to turn over responsibilities for the audit of their returns to tax professionals whose fees have made it necessary for taxpayers to concede possibly incorrect IRS adjustments. Williamson recommends the IRS revisit its correspondence of audit notifications in order to make such examinations more efficient. By increasing efficiency, the government will receive more revenue, which lessens the burden on the tax paying community that is the fastest growing sector of our economy.
To schedule an interview with Professor Williamson, please contact Ericka Acosta at 202.885.5935 or [email protected].
About the Kogod Tax Policy CenterThe Kogod Tax Policy Center conducts non-partisan research on tax and compliance issues specific to small businesses and entrepreneurs. The Center develops and analyzes solutions to tax-related problems faced by small businesses and promotes public dialogue concerning tax issues critical to small businesses and entrepreneurs.
About American UniversityAmerican University is a leader in global education, enrolling a diverse student body from throughout the United States and nearly 140 countries. Located in Washington, D.C., the university provides opportunities for academic excellence, public service, and internships in the nation’s capital and around the world.
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