Good Recordkeeping is Important in the Event of an Audit

Posted on July 19, 2012

When you are in your own business, you are supposed to keep good records in the event you are audited. Good recordkeeping is also important to your accountant for preparing your tax returns, and for you to determine how profitable your business is. But what can happen to you if you are audited by the IRS and your records are less than stellar? The IRS is actually pretty liberal in allowing you to estimate your expenses provided that your estimate is reasonable and you largely demonstrate that you paid the claimed expense. The IRS will certainly not allow all of your expenses if you don