The IRS typically doesn’t specifically target small businesses, but they do enforce tax laws across all types of businesses, regardless of size. Small businesses may face scrutiny from the IRS if there are indications of non-compliance with tax regulations, such as underreporting income, overstating deductions, or failure to file tax returns.

The IRS uses various methods to identify potential non-compliance, including random audits, data matching, and referrals from other agencies or individuals. Certain industries or types of businesses may be subject to more scrutiny due to higher risk factors or historical patterns of non-compliance.

It’s essential for small businesses to maintain accurate and complete financial records, comply with tax filing requirements, and seek professional guidance if they have questions or concerns about their tax obligations. Proactive compliance can help businesses avoid IRS scrutiny and penalties.