Wednesday, March 05, 2008

I Got That Receipt ….Somewhere!?!?

The IRS has provided us taxpayers with some important information regarding preparing returns with questionable deductions. If a taxpayer can not locate all their receipts to justify a deduction on their return, the tax preparer may be in their best interest to not add the deduction.

The IRS used to penalize preparers $250 for a tax return containing questionable deductions; now the penalty is $1,000, or 50 percent of their fees, whichever is greater.

Be sure to have ALL your receipts to justify your tax deductions for the rules are definitely changing. Most professional tax preparers go through a formal checklist once a return is completed. For more information check IRS Notice 2008-13.

Keeping Your Business N Synergy

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