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Study says College Park small businesses more likely to be audited

6:28 PM, Apr 15, 2013   |    comments
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ATLANTA -- According to a new study, there are five areas in the country where small businesses are more likely to be audited and one of those places is College Park, Georgia.

For more than 100 small business entrepreneurs in a city with about 14,000 residents, it means keeping a close tab on all expenses and keeping accurate written records.

College Park was singled out in a study from the National Taxpayer Advocate as a "City to Watch" for increases in IRS small business audits.

Maurice Pope owns a barber lounge on Main Street and cannot figure it out.

"It's a very small city, very localized with a lot of eclectic businesses around here and to think they would pinpoint this area that seems strange to me," Pope said.

"Being a small business you are not generating so much income anyway. Small business is small business for a reason and you are trying to make a living and make ends meet," he added.

City officials say possible audits may be because of small business concessions at Hartsfield-Jackson or inside large College Park hotels.

But owners like Main Street restaurateur Delvin Davis, is not taking any chances.

"You want to make sure you keep everything, absolutely everything. We have a bar, we have servers, that type of business and we deal with lots of cash so you definitely want to keep that together, everything on the books," Davis said.

But the IRS contradicts the study by saying it doesn't pick specific cities for audits.

"The IRS does not base its audits on location. We base our audits on individual income and what he or she places on the return," said Mark Green of the IRS, Atlanta.
But College Park business owners are on alert.

"No guys in all black suites jumping out from the shade, the IRS, not yet," Pope said.

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