I’m being audited by the IRS and don’t have my source documents. What do I do?

Chicago Small Business Accountant

Proper documentation can be difficult, but it is your only salvation in the event of an audit. Getting a copy of many of the source documents years after the fact may, or may not be possible. You can always get a copy of bank statements, canceled checks, and deposit tickets from the bank.

 

Inventory, if you have one, can be a problem. If they are auditing an income tax return from three years ago, and you haven’t documented you inventory properly, what are you going to do now? What about your Sales? If you didn’t keep copies of all of your invoices, register receipts, and/or sales journals how are you going to prove that your sales weren’t actually twice what they were? If this is what is happening to you, then you should have changed accountants a long time ago. This never should have been allowed to occur. Call our offices today.

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