Passing Marks?
New legislation could improve the IRS' report card when it comes to considering the needs of small business.
By Joan Szabo •
Opinions expressed by Entrepreneur contributors are their own.
Regflex isn't the latest exercise trend-'s a lawdesigned to make sure federal agencies address the needs of smallbusiness when they issue rules and regulations. The RegulatoryFlexibility Act (RFA) requires agencies to determine whether theirproposed and final rules will have an economic impact on smallbusiness and to examine less burdensome alternatives if the impactis deemed significant. So far, however, small-business advocatessay the IRS is not keeping up its end of the deal.
To bring the IRS into better compliance, the House Committee onSmall Business recently held hearings on the issue. RankingDemocratic member Rep. Nydia M. Velázquez (NY) is especiallyconcerned about the financial impact tax regulations are having onentrepreneurs. "Despite the fact that the IRS is responsiblefor the highest regulatory costs impacting small businesses, it hasbeen the worst violator of applying RegFlex analysis," shecontends. The cost per employee with regard to small-business taxcompliance topped the costs for large companies by 114 percent, shesays.
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