There’s a dangerous myth floating around the Internet. It goes something like this:
“If you lose your business records, don’t worry about it. All you have to do is sign an affidavit stating that ‘these are my deductions and I affirm they are correct’ and you’re home free.”
If this sounds silly to you, think about how it sounds to the IRS or to a judge!
Nope. If you lose vital tax records there’s a much better way to handle things as you’ll learn when you read my new article titled Tax Tips: Don’t Get Fooled by the Deductions Affidavit Myth!
Three ways our fact-filled article can help you:
- We’ll tell you the first thing you need to do. If you lose your records, your best option is to gather all the evidence you can find and “reconstruct” your expenses. We’ll give you the details when you read the full article.
- You’ll learn how the “Cohan rule” can help you. If you lose your tax records, you may be able to get the court to estimate your expenses under the Cohan rule. The Cohan rule can help you salvage some deductions that would otherwise disappear alongside your missing records. We’ll explain everything when you read the full article.
- You’ll learn how the “Cohan rule” can hurt you. The fact is, the Cohan rule” has three major flaws you need to know about. We’ll list them for you when you read the full article.