A recent influx of IRS letters is denying claims for pandemic-era tax credits, compelling businesses to navigate a complex appeals process or pursue legal action against the agency. This situation is exacerbated by the IRS's increased scrutiny, including hiring more agents to ensure compliance with tax regulations, even for small transactions. Notably, the IRS has been criticized for its handling of tax matters, as evidenced by a reported $2 billion accounting error, juxtaposed with strict enforcement on minor income, such as a $601 Venmo transaction. These developments highlight ongoing concerns about the IRS's approach to tax compliance and the potential risks for taxpayers.