"That is NOT okay" — Shark Tank's Kevin O'Leary makes his feelings known on extending audit window for small businesses

Shark Tank mentor Kevin O’Leary shared his views on the latest tax bill in an Instagram reel posted on May 14, 2025. The clip featured a segment from his Fox Business Live interview, where he both praised and criticised parts of the legislation.

While O’Leary welcomed new provisions like “no taxes on tips and overtime” and “stable tax policy” as steps in the right direction for small businesses and workers, he took issue with one specific clause — the extension of the IRS audit window for small businesses that claimed Employee Retention Credits (ERC) during the pandemic.

“This tax bill does some things right, but one part is OUTRAGEOUS,” the caption of the post read.

For O’Leary, the audit extension represents more than just policy — it’s a direct attack on the entrepreneurs who kept people employed during a crisis.

“That is NOT okay, and I’m going to fight it. Small businesses built this country. It deserves support, not suspicion,” he further added.

Shark Tank mentor O’Leary challenges extended audit powers in tax bill

Kevin O’Leary raised concerns about a section of the new tax bill that proposes extending the audit window for small businesses that used Employee Retention Credits (ERC) during the pandemic. In his Fox Business interview, he questioned the reason behind giving the IRS up to nine years to review claims.

“This can’t be right. Why would they do this?” he asked.

O’Leary stated that while there may have been fraudulent claims, most businesses operated within the rules.

“Sure, there’s fraud in every government progra, but 95% of these businesses deserved that money and are still in business because of that money,” he said.

Shark Tank's Kevin O’Leary believes that extending IRS audits makes it seem like businesses did something wrong and could hurt how regulators see small businesses. He said this might make companies hesitate to follow government guidance if it could lead to audits years later.

O’Leary also pointed out that the ERC program was meant to help businesses stay open and keep staff during COVID-19. Changing the rules now puts unfair pressure on those who followed the original guidelines.

O’Leary stated he plans to bring this issue to Capitol Hill. “It’s got to get fixed — just because of the attack on small business,” he said. His remarks reflect an ongoing debate over how long the government should be able to revisit pandemic-era claims and whether such audits support or hinder recovery efforts among small business owners.

Shark Tank investor O’Leary outlines concerns and next steps

Shark Tank star Kevin O’Leary used his social media platform to highlight both the parts of the tax bill he supports and the sections he opposes. In the caption of his Instagram reel,

“Finally, small business gets some respect. No taxes on tips and overtime? That helps real workers. Stable tax policy? That helps owners invest and grow... It’s about time,” he further wrote.

However, he also drew attention to what he described as a harmful addition.

“But buried in the bill is a hidden attack: they want to extend the audit window on small businesses. That sends the message you lied or cheated — even after you kept your team employed during COVID like the government asked,” he added.

Shark Tank investor O’Leary explained that while the bill contains positive elements that may benefit both workers and employers, the audit extension could lead to increased uncertainty for businesses that followed guidance during the pandemic. He stated that the message sent by such a policy risks discouraging future investment and trust in regulatory consistency.

Shark Tank episodes are available to stream on ABC.

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