Hey
"It is the business owner's responsibility to maintain the documents needed to verify their reported income," IRS.
The above means that you cannot blame your tax professional if some
information is missing to verify your reported income and expenses or write-offs.
What does this mean?
You
should always keep anything that affects your income, meaning receipts, invoices, signed contracts, etc., in a safe place in your office. You should also make electronic copies and store them online.
This information protects you when the IRS thinks something is wrong with your return and requires verification. Also, claiming some credits, such as the Earned Income Tax Credit, could make the IRS ask for this information.
So, the bottom line is: Always make it your responsibility to keep tax documents. If I, as your tax pro, tell you to keep certain records,
you have got to do it.
More so, set a scheduled time or day each week to make electronic copies of these files and keep them online.
The 2022 tax season is coming fast; don’t get caught by surprise. Talk to me now to start planning your taxes.
Do NOT wait until the tax season starts, thinking I will prepare your return and save you money; this requires planning, which is why we should start now!
