Article by Jasen Hanson on “Broken Records May Cost More Than a Song”
In an article published on July 13, 2020 in Bloomberg Tax, Jasen Hanson discusses the importance of good record-keeping practices to avoid potential headaches and costs from the IRS.
“The Internal Revenue Code requires that every taxpayer maintain books and records “sufficient to establish the amount of gross income, deductions, credits, or other matters” shown on a tax return,” writes Hanson.
Hanson further explains how poor record keeping can cause potential issues during examination, appeals and litigation of federal tax issues. There four key aspects businesses should consider: (1) organizing records successfully, (2) establishing a clear document retention policy, (3) digitizing records and (4) knowing the requirements for your company’s specific expenses.
“In today’s increasingly electronic environment, the ability to digitally store and maintain records has become increasingly popular and cost-efficient,” explains Hanson. “Digital records can be easier to track, manage, and store. Not to mention that nothing fades as fast as the very receipt you need three years down the road.”
To view the full article, click here.