As Black Entrepreneurship Grows, Attention Shifts To Auditing Small Businesses

person holding a tablet with graphs on the screen
Alyssa Guznik
August 23, 2022

Congress passed the Inflation Reduction Act. Included in this bill is the addition of 87,000 new IRS auditors.  Black small businesses are directly in their crosshairs.

The number of new black-owned businesses has increased exponentially in the last two years. Our businesses are prospering.  

Naturally, this means that the system is coming for our bag.

The IRS says that it doesn't track the race of those it audits, and yet predominantly Black counties have higher instances of audits. The ten counties with the highest rates of audits are ALL Black counties. 

There's a reason that our homes and businesses are frequently the targets of their ire.

The IRS makes its money from audits. This new Act projects to drive $203.7 billion into the IRS's bucket over the next decade - much coming from small businesses. Black small companies don't have the extra money to appeal audits, so, we pay them what they want. 

But we can fight back in a different way.

By keeping meticulous financial records, making timely tax payments, and knowing what the IRS is looking for, Black businesses can remain standing and unscathed by this new supremacist method of attack.

We have a quick favor to ask:

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