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January 2010
The tax filing season is just around the corner, so if you haven't already done so, it's time to organize your records. Whether you are a business owner or an individual taxpayer, you can avoid headaches at tax time with good records because they will help you remember transactions you made during the year.
Keeping well-organized records also ensures you can answer questions if your return is selected for examination or prepare a response if you are billed for additional tax. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, you should keep any and all documents that may have an impact on your federal tax return.
If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, which ever is later. Examples of important documents business owners should keep include:
* Gross receipts: Cash register tapes, bank deposit slips, receipt
books, invoices, credit card charge slips and Forms 1099-MISC
- Proof of purchases: Canceled checks, cash register tape receipts,
credit card sales slips and invoices
- Expense documents: Canceled checks, cash register tapes,
account statements, credit card sales slips, invoices and petty cash
slips for small cash payments
- Documents to verify your assets: Purchase and sales invoices, real
estate closing statements and canceled checks
For more information about recordkeeping, check out IRS Publications:
Pub 583 at http://www.irs.gov/pub/irs-pdf/p583.pdf
Starting a Business and Keeping Records
Pub 463 at http://www.irs.gov/pub/irs-pdf/p463.pdf
Travel, Entertainment, Gift, and Car Expenses
These publications are available on the IRS Web site,
IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Above notes shared from the Greater Spokane Chamber of Commerce Dec 17 Issue of BIZStreet News. I am a member of the Greater Spokane Chamber of Commerce. Brenda
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