what are some reasons why a place of business would audited?

Question

my sister in law works at a payday loan place and we just found out that the owner is being audited? we don't know too much about this so we are wondering if the store is going to be closed down?

Answer 1

There has been an investigation on these businesses and the interest rate they are charging, its been in the news.

Answer 2

Paydan loan businesses are a lot like being in the loan shark business and are coming under close federal scutiny at present. Also, strict legislation is pending that will regulate them. Due to the unsavory way they rob people the IRS is very interested in their activities.