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What is the best way to prove the expenses and deductions that I have taken on my tax return? |
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You should always prepare your records as if you will be audited in the future, which will save you time and reduce your stress in the long run. In an Internal Revenue Service audit, you will be asked to provide proof of the various expenses and deductions that you have listed on your return. If adequate proof is not provided, then they may deny the use of those expenses or deductions. You should keep every receipt, invoices and any other proof that corroborate the expense or deduction. You can also use accounting software to organize your income and expenses for tax time. The IRS recommends that you keep these records for as long as the statute of limitations expires on that specific return. |
