By now, most everyone in California has heard about the scandals facing the IRS. Since the story first broke, there have been changes in leadership and the IRS remains under a microscope. As a result, rumors are circulating that there will be fewer audits conducted and when an audit does happen, it will be "kinder and gentler" than in the past.
Now that April 15 has passed, many California taxpayers are breathing a sigh of relief that they don't have to deal with the IRS for another year. However, that may not be the case. It is in the days, weeks and even months following April 15 that the IRS sends letters to out to taxpayers on a myriad of issues.
It may not surprise anyone that the IRS has developed a software application to help them identify people that may be cheating on their taxes. According to some, this program has indicated that small businesses have a tendency to cheat on their taxes at a higher rate than most. Many of those small businesses that end up being subjected to audits are said to be located in California.