As you are probably aware, everyone is after money. The government is raising taxes, the counties are cutting services, my kids never bring me back the change. One of the best ways for Uncle Sam to increase revenue – besides raising taxes – is to audit taxpayers. I know it is hard to believe that there are people out there that are not on the “up & up” when it comes to their tax reporting. Fudging a little here and there has not been the culprit lately. Many people rely on their credit card bill as the backbone of their records when they are audited. The charge for Costco, Safeway, Amazon; all listed as expenses on their tax return. The IRS does not accept this proof as substantiation of the expense. Only the actual receipt is proof (along with an explanation of how it relates to your business).
So, if you have not been saving each and every credit card slip for your business, it is time to make that a habit.
And since I have you forming new habits, be sure to write on every credit card slip that relates to meals, who you were with and what business you discussed. That information is required in order to allow the deduction. If you should need some additional training in this area, I am always available to be taken to lunch so that I can monitor your recordkeeping skills?at a slightly reduced rate!!
My family gathered together last week to watch the Oscars and my wife asked me: “If you won an Oscar, what would you say about me in your speech?” All I could think of in that split second was a great line by the comedian Rita Rudner:”…if I had shot you when I met you, I would be out of Jail by now…”
Not my best moment!
Thanks for listening and I will talk at you next week.