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Posted: 2/24/2006 10:01:46 AM EDT
[Last Edit: 2/24/2006 10:02:00 AM EDT by BeetleBailey]
Or are receipts, invoices, etc. expressedly required?
Link Posted: 2/24/2006 11:01:08 AM EDT
a bank statement is only proof of a disbursement. you will need the invoices to prove that you bought the items that you claim. otherwise, in the view of the IRS, you could simply be routing the money through businesses in order to avoid paying taxes.
Link Posted: 2/24/2006 12:31:28 PM EDT

Originally Posted By sirensong:
a bank statement is only proof of a disbursement. you will need the invoices to prove that you bought the items that you claim. otherwise, in the view of the IRS, you could simply be routing the money through businesses in order to avoid paying taxes.



Link Posted: 2/24/2006 12:36:18 PM EDT
It is really infrequent that individuals are audited unless you have a really high net worth or have a very irregular tax situation (more so than ever now). All the returns are analyzed by a computer and ones found to irregular are reviewed by real people. I'm still in business school (1 year left), but I believe that for any thing you are going to expense you need to have a receipt or invoice of some sort. I could be wrong though, while I have had an accounting class every semester I have the first tax accounting course next semester. My limited tax knowledge is really more pertinent to publicly traded corporations.
Link Posted: 2/24/2006 12:37:53 PM EDT
thanks, A
Link Posted: 2/24/2006 12:41:12 PM EDT
I work for an accounting firm so if you want the official scooby then let me know.
Link Posted: 2/24/2006 12:45:31 PM EDT
Link Posted: 2/24/2006 2:36:33 PM EDT
In my business I pay for everything with a credit card unless I have an account with a vendor then there is a statement for records. Recommended by my accountant.
Link Posted: 2/24/2006 2:41:05 PM EDT
My parents used to get audited almost every year for about 6 years in the 80's.
I think it was due to their charity donation claims which added up to about $10-$12K per year. They never had any problems since they had copies of checks and statements from organizations.
Link Posted: 2/24/2006 2:50:27 PM EDT
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