Update from the IRS Audit Battlefield - Tax Return to Audit to Tax Return

Here are three tips from the IRS Audit front line:

1. Business Owners, reconcile your total bank deposits with reported income. This is request number one on the auditor's list. Help yourself out and have this list ready when you receive your audit notice by making it part of your tax return supporting documents.

2. Travel Logs - use a calendar, excel spreadsheet and a mapping tool such as Google Maps to document regular trips and the distance per Google maps. This is an easy sign off by the auditor.

3. Credit Cards - the best comment I heard from an auditor is to treat credit cards like another bank account. Account for each charge as a separate item. Not all charges may be deductible, just like a business bank account.

Hope this give you a heads up on your tax return and audit planning.

Have questions on your return or IRS audit? Contact tax attorney Martin Cantu.
Location: Law Office of Martin Cantu

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