RECORDS: DOCUMENTING EVERYTHING FOR EVERYONE

摘要

Records are important, not only to back up tax deductions but also to qualify for those recent government funding programs or traditional loans. And, of course, records are an invaluable tool when preparing the financial statements so necessary in managing the pressure washing operation. Obviously, there's a lot more to recordkeeping then meets the eye. The so-called "Cohan Rule" allows taxpayers to deduct business expenses even if they do not have the receipts to document them. But both the IRS and the Tax Court can legally reconstruct the expenses and income of any business without records, and it is up to the taxpayer to prove them wrong.