See this article on IRS increasing audits of small to medium sized businesses by 30%.  We are seeing this in my practice and in talks with other practioners.  My opinion on this is that the IRS can get easier dollars by targeting small businesses rather than large ones with less resources, even though per dollar-wise, it still makes sense for the IRS to go after the Fortune 1000s.  Of course this is bad news for most small business owners that don’t have resources to fulfill these IRS audit requests.

http://smallbiztrends.com/2010/07/irs-auditing-more-small-businesses.html