The Ground Rules in Playing the Tax Game with IRS Have Been Changed
If you have a business with deductible expenses and you want to keep these deductions, you must have solid documentation of all business expenses.
Here is what is happened already:
- Over the past several years the IRS has addedmany new forms to track your financial activities.
- Many of these new forms, prepared by banks, brokerages, title companies, and other financial institutions, are filed electronically.
- IRS computers cross-match the information from these forms to various income tax returns. A process made more efficient by electronically filed tax returns.
- Computer capabilities have dramatically increased enabling the computers to process more return information to determine audit potential.