The newly-reorganized Internet Revenue Service has a new electronic commerce department to manage and coordinate the tax compliance of e-commerce businesses in all of the IRS's operating divisions. One of the early initiatives undertaken by the department was to conduct a study of small Internet businesses. The study disclosed that there are tax compliance problems among this market sector, including some underreporting of income and a lack of proper registration. The companies chosen for the study were randomly picked by a computer from a group of 18,000 websites. The results of the study can be viewed here at Interactive Gaming News.
Click here to view the study.