Let’s face it. The IRS is paid to be suspicious.
And who can really blame them? After all, it’s their job to make sure that the meals, trips, etc. that you “write off” as business expenses are legitimate.
That’s why it’s so important to keep complete back-up documentation that will prove to the IRS that all your deductions are on the up-and-up.
We’ll explain how you can stay out of hot water if you’re ever audited when you read my new article titled Tax Tips: Digitize Tax Receipts to Protect Yourself and Make Credit Card Statements and Checkbooks Complete.
Three ways our fact-filled article can help you:
- We’ll explain an important fact that every taxpayer should know. Here it is… Lack of adequate documentation is by far the most common reason taxpayers lose deductions in IRS audits. Sure, you can go through the hassle of manually organizing your receipts. But there is a better way: make digital copies of all your receipts. These days it’s easier than you think! You’ll get the whole story when you read the full article.
- We’ll tell you the five most important things you need to document. By statute, the tax law requires the IRS to look at specific details when you deduct travel, vehicle, meals, gifts, and entertainment expenses. What are they? We’ll spell them out for you when you read the full article.
- You’ll learn how to handle “The $75 Rule.” Here’s good news for a change: The IRS does not require you to keep receipts for vehicle, entertainment, meals, or travel expenses that cost less than $75. But that doesn’t let you off the hook. There are still two kinds of proof you’ll need to provide if the IRS asks for it. What are they? You’ll find out when you read the full article.