Public persona and "Shark Tank" investor Kevin O'Leary had some key advice for those concerned about the IRS's big expansion plans. The government agency stated that the additional resources will be used to increase audits for those earning above $500,000.
O'Leary says that small businesses concerned about potential audits have no reason to panic. During a chat with Fox Business, the investor told viewers that he and the CEOs he works with "had a bit of a town hall" to discuss next steps, "and said 'Okay, this is a reality. What are we going to do about it? We've got to start preparing our taxes and our payroll records.'"
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O'Leary was quick to sympathize with small business owners though. "Small business, you're growing, you're scrambling, you're trying to keep things open[...] and you fall behind on keeping your records clean," he says. "This tells you now you've got to have crystal clear records. You have to invest in keeping yourself compliant. Because when you do and if you get audited, the best thing is to have the data."
He also says that it might be time to "invest more in payroll technology and accounting records and everything else."
Apart from keeping your paperwork in order, O'Leary has another golden nugget of advice: don't panic. "Now, I don't know how fast they're gonna push on these audits, but this is something that we deal with now anyways," he points out. "The IRS has programs [to support] small businesses[...] The IRS is not your enemy, they're your friend."
