Do you practice excellent record keeping?
According to the IRS, most of the highest risk audit areas include many aspects of good record keeping! These areas include high wages, high tax deductions, unreported income, self employment, home office expense, auto expense record logs, etc. It is important for everyone to keep records to maintain low risk for these intense audits!
Not to mention that President Obama has advised of plans to double funds to enforcetax law and compliance within just the next year.This means that audits will be on the rise for individuals and businesses that are not compliant and cannot provide supporting documentation for all of their transactions. Efficient bookkeeping could lower your risk for these audits! Call us to find out more.
Keeping accurate records will not only allow you to support your tax returns to the IRS but also monitor the progress of your business, keep track of your deductions, prepare your financial statements, and also identify the sources of your income.