UNDER THE IRS GUN

Physician's Money Digest, July15 2003, Volume 10, Issue 13

The IRS estimates that the taxgap between what taxpayers owe andwhat they pay is at least $285 billion,and a big part of the shortfall originateswith small businesses (ie, companieswith less than $10 million inassets). This group, which includesmost medical practices, shelled out$915 million in taxes in 2001, but theIRS thinks the government is entitledto more, so the agency has scheduled34,000 face-to-face audits with smallbusiness owners over the next 2years. New software is also helpingthe IRS match income reported byS-corporations and partnerships withpersonal returns of the business owners.Make sure your practice is up tospeed in its IRS obligations so thatyour nest egg doesn't get any unexpecteddeflations.