A. There’s no one way to keep records. In fact, the IRS states on its website that “you may choose any recordkeeping system suited to your business that clearly shows your income and expenses.” However, it’s important to keep thorough and accurate records. If you have incomplete or no records and get audited by the […]
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IRS Tax Audits – When It Pays To Ignore An IRS Audit Notice
IRS Tax Audits – When It Pays To Ignore An IRS Audit Notice If you decide not to show up at the time and place requested in an IRS audit letter, you tacitly agree to pay the additional tax in question. But sometimes, that’s the smartest course of action. When it’s wise to stay home: […]
The Disappearing Check 21 Law – Check Clearing For The 21st Century
The Disappearing Check 21 Law – Check Clearing For The 21st Century The Check 21 Law went into effect on October 28, 2004 installing regulations which control the electronic storage of check images. Ronald Semaria has written a detailed summary of the law and the ramifications of the Check 21 Law. Read his article on […]
Scanning Receipts
Scanning Receipts 1997-13 I.R.B. 9 – Section 6001 — Required Records – Statement of Procedural Rules – Summary GUIDANCE OFFERED ON ELECTRONIC RECORDS. The Service has provided guidance (Rev. Proc. 97-22) for taxpayers that use an electronic storage system to maintain their books and records. Records in an electronic storage system that complies with Rev. […]
Recordkeeping Rules – Know What To Keep And For How Long
Recordkeeping Rules – Know What To Keep And For How Long In most cases, the IRS has three years to audit your return. You can also file an amended return within those three years. But the IRS has up to six years if you understate your income by more than 25%. And the statute of […]
Check Imaging & Electronic Bill Payments – Don’t Do It
Check Imaging & Electronic Bill Payments – Don’t Do It ! Some banks are trying to save money and offering to send you copies of your cancelled checks. The idea is that you won’t have to sort your cancelled checks and you will have less work. Unless you want to spend the rest of your […]