A couple of things on this thread.
As the benificary of the IRS microscope for the last three years running, I am again spreading wide and holding my breath for the 4th year. It seems that if you are in a cash business, they like to look closer. Also, if your deductions are outside of the norm for others in your type of work, they will take a closer look.
Words are not adequate to descibe what goes on in an audit. They will want you to explain each and every deposit into any account you have, checking, savings, IRA, and the list goes on and on. You had better be able to explain any money movement more than 5-10 bucks.
Also, deductions. IF you dont have the actual reciept, you dont get the deduction. Copies and photo-copies are not acceptable. I dont care if your dog ate them, or your cat pissed into the box of reciepts several times (happened to me) and soaked the receipts in urine. They want the original.
IT is interesting how agents from the IRS and UPS management are simular in how the rules change from one to the next. One question to 4 IRS agents, 4 different answers. But each has the ability to totally shut your life down. Seize all your assets, freeze all your accounts, all by the click of a computer mouse.
BTW, paying 50 a week for your wife to do uniforms because that is the "union rate" will get them to ask to see her deductions for union dues. IF she aint payin, you will have to change your deductions.
As a side note, the three anal exams that are closed found no issues except where I did not send out 1099's. Dont see as this one will be any different. But I still have to take about 3-4 weeks worth of my time to placate the *%@&#$.
Claim all you can, but dont cheat. While they usually dont go back more than a few years, if they suspect fraud, they can go back decades. ARe a few bucks worth it?
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