Things to keep in mind this tax season by Melissa Schiff, CPA

By | February 12, 2017

The IRS is demanding ever increasing organization and improved record keeping from business owners. In our ongoing effort to help you stay compliant we would ask you take a moment to review the issues below and make sure your operations are in order.

Updated forms: Sales Tax Exemptions, W-4’s, W-9’s You should have new versions of each of these forms each year. The form should be acquired at the time of the 1st transaction of the year.

Substantiation of Expenses You will have support to show the IRS if your tax return is ever examined. You can’t deduct amounts that you approximate or estimate. You should keep adequate records to prove your expenses or have sufficient evidence that will support your expenses. You must generally prepare a written record for it to be considered adequate. You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense.

2016 Business Client advice sheet – record keeping