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Don't Mess with the IRS

In this month's issue of The General Ledger (The General Ledger, Newsletter from AIPB, July 2021, Vol. 38, No.7.) specific cases are outlined where the taxpayer went to bat against the IRS and did not come out ahead.

In one case, the dispute to do with incomplete records. The IRS accepted the taxpayer's business but not his proof of business expenses, or that the deductions were actually ordinary and necessary expenses.

Although the taxpayer submitted a spreadsheet, bank statements and the credit card statements for the expenses, the court still said the evidence was incomplete.

TOP TIP from Pam Saul - make detailed notes about your expenses, including specifics of what they are for (not just "insurance") and how they directly relate to your business. If you receive something in return for an expense you submit, write down what it is and what it's for.

When in doubt, give more information not less. And work with a bookkeeper like us, who can advise you accordingly. There's no need for you to be feeling your way through it, or worse. Reach out for a free consultation to see what Saul Bookkeeping can do for your business.


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