If you're like me, giving up precious space to store years of paperwork is the last thing you want to do, yet the IRS requires you to save all that paper for years. The good news is that the IRS will accept scanned copies of all documents. With our document scanning service you can reduce boxes of paper to the size of a CD. We'll scan everything throughout the year, then once your tax return is finalized, we will give you a CD containing copies of all your paperwork, including the final P&L and Balance Sheet.
Exactly how long does the IRS require you to keep documents to support your tax return? Well, that all depend, and it varies from 4 years to forever! For more
details on records retention click here.
Not sure what documentation you need to keep? Basically you need to keep supporting documentation for every transaction. Supporting documents include the following:
Gross receipts- proof of income may include cash
register receipts, bank deposit slips, receipt books,
invoices, credit card charge slips, and forms 1099 -
Purchases - proof of purchases may include canceled
checks, cash register tapes, account statements
credit card sales slips, and invoices. If you have purchases
for travel, transportation, entertainment, or gifts, you must
be able to prove certain elements regarding those
purchases. For more information on how to
substantiate these expenses click here.
Employment Taxes - supporting documents for
employment taxes include, but are not limited to your
employer identification number, amounts & dates of all
wage, annuity, & pension payments, amounts of tips
reported, fair market value of in-kind wages paid, names,
addresses, social security numbers, & occupations of
employees, copies of Form W-2 that were returned
undeliverable, and dates of employment. For a full
list of employment tax supporting documents, click here.
A word of caution - bank statements, credit card
statements, and canceled checks alone are not sufficient
proof of a business expense. You must have some type of
receipt that shows specific items purchased.
Document Scanning ~
Call Today ~(661) 713 1639
quickbooks Certified ProAdvisor
Alecock Business Solutions
Accounting Services for Entrepreneurs, Small Business, and Individuals