(And how incorporating your business will reduce your
audit risk by 714%)
The IRS released their 2012 Data Book that
reported the following information about its audit activity for the 12 months
ended 9/30/12:
Tax
Tip: If your small business or rental activity has sales
or rental collections in excess of $100,000, you can drop your audit risk from
3.6 percent to 0.5 percent! This
reduction in audit risk must be seriously considered when weighing the incorporation
of your small business.