Sunday, January 7, 2007

Record Keeping for IRS Audit*

*A Serious and not-so-serious look at RECORD KEEPING.*

A carpenter filed his tax return and the IRS called him in and asked to see his records.
“Where do you want them,” the carpenter asked.
“Right here on my desk,” the IRS agent replied.
The next day the carpenter came in with a wheelbarrow full of pieces of wood and dumped them on the IRS agent’s desk.
“What the hell are you doing?” the IRS agent asked.
“These are my records, the carpenter replied. “I write everything down on pieces of wood I’ve sawed off on the job.

For more serious information on record keeping:

LINKS and Other IRS References and Resources


Subscribe in NewsGator Online
Subscribe with Bloglines
Add to My Yahoo!
Add to Google
Add to My AOL

This information is not intended to be advice to the recipient. In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this Blog was not intended or written to be used and cannot be used for the purposes of avoiding penalties.


Ulli...The Wall Street Bully said...

I guess it doesn't matter how you keep records, as long as you do keep them...

taxxcpa said...

For a sole proprietor it doesn't matter as long as it proves your deductions. But a corporation or partnership needs to keep double entry books--their returns may require a balance sheet as well as an income statement.

The amount of information for corps and partnerships is less detailed if receipts are under $ 250K