IRS Still Targeting Tea Party ~> Now Targeting Small Business's Over "Income Under Reporting" ~> Full Report

2 Questions: Why does this "Agency" still exist? Why is Obama, Lerner and dozens of others not in prison? America, "Wake the Flock Up."

Small business owners across the country are receiving letters from the IRS questioning if they are reporting all of their cash income, in a new push by the agency some are saying could unnecessarily create fear in the small business community.

The Wall Street Journal reports the initiative is an attempt to respond to what the agency feels is a widespread failure by small businesses to report all their cash sales.

The agency says the letters are not the same as an audit, and it is simply seeking more tax information from the businesses. However, some lawmakers and business owners who received the letters say the initiative is alarming.

"There's an emotional thing when you get a pretty ominous-looking letter from the IRS, [saying] you might have done some bad things," small business owner Tom Reese tells the Wall Street Journal. "I really work hard with my accountant to make sure that I not only follow the law, but follow the letter of the law."

One letter the IRS sent is headlined, "Notification of Possible Income Underreporting." It notifies the business owner "your gross receipts may be underreported" and says they must complete a form "to explain why the portion of your gross receipts from non-card payments appears unusually low."

One lawmaker says the letter’s tone implies wrongdoing from the start.

"The letter implies that this is a serious matter that could lead to assessments of additional tax, penalties and interest," says a letter sent to the IRS Friday by Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee.

In a remarkable admission that is likely to rock the Internal Revenue Service again, testimony released Thursday by House Ways and Means Committee Chairman Dave Camp reveals that an agent involved in reviewing tax exempt applications from conservative groups told a committee investigator that the agency is still targeting Tea Party groups, three months after the IRS scandal erupted..

In closed door testimony before the House Ways & Means Committee, the unidentified IRS agent said requests for special tax status from Tea Party groups is being forced into a special “secondary screening” because the agency has yet to come up with new guidance on how to judge the tax status of the groups.

In a transcript from the committee provided to Secrets, a Ways & Means investigator asked: “If you saw — I am asking this currently, if today if a Tea Party case, a group — a case from a Tea Party group came in to your desk, you reviewed the file and there was no evidence of political activity, would you potentially approve that case? Is that something you would do?”

The agent said, “At this point I would send it to secondary screening, political advocacy.”

The committee staffer then said, “So you would treat a Tea Party group as a political advocacy case even if there was no evidence of political activity on the application. Is that right?” The agent admitted, “Based on my current manager’s direction, uh-huh.”

Full Reports:  FoxNews & Washington Examiner