Oh yeah. I’ve got it.

I Got ItWhen the IRS calls and decides that they want to audit your business records, you will want to be sure they are credible long before you get “the letter.”

Credible means that you have receipts and other documents from your suppliers and vendors along with your notes made “at or near” the time of the activity.

And when the Auditor or Agent asks for something, you will want to be able to say “Oh yeah.  I’ve got it.”  That way they know you have excellent records and it could significantly shorten the length and intensity of your audit.

If you have to go home and “find” the records, there is a question as to the accuracy and authenticity because you might have created the records after the IRS asked for them (not that anyone would do that, of course).  Herman Wouk once said “Income tax returns are the most imaginative fiction being written today.” Don’t let this be your return.

Vehicle deductions , travel and meals must also be documented and logged.  The information required for these deductions are specifically referenced in the Internal Revenue Code and are a favorite target of the IRS because most people don’t know what is required and don’t have the required records.

We had a client that thought they didn’t need to keep receipts because they had entered the information into their accounting program.  The IRS disallowed thousands of dollars in deductions because those third party records and the proper notations were not available on the first appointment. And the IRS Agent camped out at our office to check almost everything.

Don’t let this happen to you.  Keep good business records and keep them now to maintain your tax deductions.  Credible records don’t happen by accident.

If you are looking for a simple online record-keeping system that you can use from your smartphone or computer, may we recommend our simple system – http://www.MyTaxBuddy.com.  In the time it takes to answer an email, you have done your tax recording.  So simple you can start right now.  Don’t put it off and pay more tax because of poor records or no records.


Tags: , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: