Dear Business Owner,

I'm not an alarmist by nature. In fact, I'm pretty easy going. But...

...last year the IRS audited more the 1.58 million small business tax returns – that's an increase of 11% over the previous year.

But here's why I'm concerned for small business owners: In 2010 the IRS increased its own revenues by 18%! And this year their goal is to increase their take by even more.

As you probably know, the government's increased revenues come from audits...and penalties.

In fact, to help the federal government balance it's own budget, the IRS is now busy adding auditors to their payrolls...1,054 new auditors to be exact....to target and audit small businesses like yours, this year!

Why are small businesses the target, you ask? Because small business owners are an easy mark. The IRS knows that most small business owners don't know the complexities of the tax laws—which are ever changing. And common payroll and HR errors are also easy pickins for the sharp eyes of IRS auditors.

Let me put it this way: you don't want the IRS to audit your small business—because most likely, they will find something that will cost you.

There are a lot of "costs" to an audit. For starters, there are the costs to your health and overall well being from sleepless nights spent in worry. Then there's the cost of having to prepare for an audit, and the cost of taking time away from your business. And then there's the big cost of the money you'll owe the IRS, plus, penalties and interest.

So, how does the IRS decide who to audit?

One tip off for the IRS is to see what you reported on your 941 quarterlies. Then they look to see if those numbers match what you reported on your W-2's; and they look at your payroll deductions for discrepancies.

The IRS is also counting on the fact that you probably don't know there were changes in the federal Unemployment rate that occurred in the middle of this year. So if you're not keeping up with your documentation, you WILL BE a target.

But perhaps one of the strangest IRS audit triggers has nothing to do with you directly. It has to do with the companies you do business with. For example, did you know the IRS can audit you if you do business with a company who's made payroll, bookkeeping and HR reporting errors?

They can. And they will.

Hopefully by now, you can see why I'm alarmed. The IRS has become a very seriously aggressive organization. They are on the prowl for your money.

So, if you're the least bit concerned your payroll may not be in compliance with the IRS—and most small businesses payroll is NOT in compliance--I invite (or rather urge) you to take advantage of our free 3 month payroll service offer....just look on the right hand side of this site to find the free payroll offer. (And don't forget to look at all the important services you get with this free payroll service too...I think you'll be impressed.)

We're also offering a free "Money-Leak Audit", which will show you where your business is (you guessed it)...leaking money...that you can put a stop to. You get this free service when you sign up for our free 3 month payroll service.

These important services will help you sleep better at night. (Just check out the videos from some of our clients and see for yourself.)

Next week I'll be writing about "How to easily avoid the costs and penalties of making late payments to the IRS". (Plus, I also have a free gift to you too.)

Here's to keeping more of your money!

P.S. If you've got an urgent need or a question, pick up the phone and call me. I'm in the office weekdays 8-4. Call: (888) 843-7100 or (209) 267-9033 Or you can Fax: (209) 267-9047; or send me an email: payroll@progressive-payroll.com