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Thursday, October 29, 2015

Poor recordkeeping - complexity or too busy

Every year there are several tax cases where taxpayers think they'll get a better result in court despite poor records. They almost always lose. I've got a short article in today's AICPA Tax Insider on some of these cases, including a few involving marijuana businesses.  I hope you'll take a look - Poor Recordkeeping Hurts Taxpayers: Problems and Preventions.  I don't think these are really problems due to tax law complexity because businesses should maintain records for both tax and non-tax reasons. Of course, where a tax rule requires records beyond what is required for bookkeeping or financial reporting purposes, that should be examined as part of tax reform.  You'll see that in a few cases mentioned in the article that people were claiming deductions they were not entitled to, such as expenses of a car you don't own (including depreciation!).

What do you think?  Do you know of any new apps or other tools to help busy business owners maintain proper records?

6 comments:

Enter Active said...

What is a good free online tax return site to use. I need to file a federal 1040 with schedule B for itemized deductions. I think turbo tax and TaxAct are a couple but looking for suggestions of what people have used and if it is secure.
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Professor Nellen said...

I suggest start with the IRS website as they have a few free tax prep software tools.

Moin Ali said...

Professional Corporate Tax consultancy firm Toronto offering corporate tax return services in Toronto Ontario Canada under supervision of best corporate tax accountants.

Jhon Marshal said...

I am really very agree with your qualities it is very helpful for look like home. Thanks so much for info and keep it up.
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Jimmy Kerin said...

Spot on with this article, I really think this website needs more attention.  I'll probably be back to read more, thanks for the info.
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Jimmy Kerin said...

I am really very agree with your qualities it is very helpful for look like home. Thanks so much for info and keep it up.
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