Manzullo: IRS should assist small business owners

In a full committee meeting held April 27 to explore ways to close the tax gap, House Small Business Committee Chairman Don Manzullo (R-IL) said the Internal Revenue Service (IRS) should expand its education and public outreach to help small business owners pay their fair share of income taxes.

IRS Commissioner Mark Everson, who testified at the hearing, recently announced the IRS will increase its enforcement activities, including more audits, to close the gap. Manzullo said he understands the push to lower the budget deficit and the readily available statistics that support increased enforcement. However, imposing increased burdens on small businesses through more audits cannot be the only answer.

"Many times, small business owners are attempting to the best of their ability to comply with the complex tax code," Manzullo said. "It is not that they don't want to comply; rather, the system and paperwork are so complex that it's difficult for them to comply."

Manzullo said the IRS would be more successful in closing the gap if it beefs up education and outreach activities to help small businesses pay their correct tax. "It is much easier for a small business owner to learn how to comply with the tax laws through taxpayer education and outreach than the adversarial audit and collections process."