Think Before You Shred

If you’re like many folks in the US during the first week of January, you’ve resolved to get rid of a lot of clutter in your life, get your finances in better order, and file your taxes early this year.

Right?

Before you turn on the shredder to help you dispose of the reams of paper you’ve been collecting, consider the IRS requirements for keeping personal and business documents. Here’s what I found out when one of my clients (thanks, KP) emailed me with that question today. Continue reading

Why Your Credit Card Statement Might Not Prove a Tax Deduction

If you think (or you’ve been advised by your tax preparer) that keeping your credit card statements is enough by itself to prove business tax deductions, you could be in trouble if your return ever comes up for examination.

That’s the message I got today at the IRS national phone forum on record keeping requirements for small [...]