Payment processors don't report small sales like $200 to the IRS. The agency focuses audits on higher earners where the cost makes sense, but audit risk isn't just about size—even small businesses reporting losses get audited.
If you're an entrepreneur that has $200 in sales, that payment processor is probably not going to report those sales to the IRS. Right. So the more you make, the more that there's automated triggers that the IRS can flag you. But just because you make more money doesn't necessarily mean that you're more likely to be audited. Really?
Yeah. It's like for the IRS, it's not worth going after people that are making under a certain amount of money because of the time and resources you have to put into it.
Yeah. With our clients, it's been across the board. We've seen some big clients get audited, smaller clients, even clients that had losses that were reported to the IRS get audited.
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