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Four ways to survive an IRS audit: keep receipts with dates and business purpose, use a separate business bank account, store records digitally, and reconcile books monthly. The IRS can audit up to six years after you file.
Four ways to survive an IRS audit: keep receipts with dates and business purpose, use a separate business bank account, store records digitally, and reconcile books monthly. The IRS can audit up to six years after you file.
Want your deductions to survive an audit? Do these 4 things. Rule number 1: Keep the receipt and the purpose. Meals with clients and mileage both require the date, who you were with, and the business reason. Rule number 2: Use a dedicated business account. Mixing personal and business accounts makes things messy and harder to find real expenses come tax season. Rule number 3: Store everything digitally. Most people don't realize the IRS can audit you 3, sometimes 6 years later. You need to have access to those records just in case. Rule number 4: Reconcile reconcile your books monthly, not just at tax season. Scrambling next April means messy books and missed deductions. Most business owners who reconcile monthly catch errors and keep more money. Want our full list of deductions and how to document it? Download it at the link in our bio.
