I have come upon some troubled times and apparently I'm going to owe the IRS quite a bit this year...
I was not prepared for this, nor do I want to spend the money I'm forcasting it will cost to make good with the IRS.
I think the only way I can combat this is to claim every deduction possible...I'm looking for clothing, furnature and travel receipts I can say were part of my job...I figure this will help get the figure down.
Only problem is, I don't have any receipts. I was asking friends and family, but nobody saved them.
Does anyone know of a good repository where I could purchase or have some receipts people aren't using?
I think this is the only way to get this tax fee down...
2007-02-13 03:32:57 · 6 answers · asked by Ted Arcidi 2 in Business & Finance ➔ Taxes ➔ United States
What you are suggesting is tax fraud. You could be fined and/or imprisoned for committing this fraud. PLUS all the back taxes you tried to save this year.
If you had a business account with a local retailer, you can ask them for a copy of your receipts. Otherwise, I would chalk this up to an expensive learning lesson. Keep those receipts!
If you did not spend the money, you cannot claim the expenses.
2007-02-13 03:43:15 · answer #1 · answered by R Worth 4 · 3⤊ 0⤋
I must advise you that this could be considered tax fraud. If you have legal deductions throughout the year, you are to keep books on it and keep your proof (receipts, credit card statements etc) on file at least 3 years. If you are self-employed it is better to keep at least 5 years.
Perhaps you would be better served by contacting a tax professional for some sound tax advice, because by your question I can tell you, you are courting trouble with a capital T.
2007-02-13 11:46:00 · answer #2 · answered by Wood Smoke ~ Free2Bme! 6 · 2⤊ 0⤋
Just having receipts won't do you any good if you get audited. You still would have to prove that it was used for business purposes. Clothing can't be claimed as a deduction as a business expense unless it was a uniform that you normally would not wear outside of work. If you are a police officer, you can deduct the cost of your uniforms since you would not wear the uniform while you are off duty. If you are a businessman, you cannot deduct the cost of your business suits since the suits can be worn for nonbusiness related functions (i.e. going to church on Sundays, weddings, etc.).
2007-02-13 11:43:53 · answer #3 · answered by jseah114 6 · 2⤊ 0⤋
Geez, you're in trouble already because you owe taxes, so your solution is to file a fraudulent return and get in more trouble? Doesn't sound real reasonable, somehow.
The fact that you "don't want" to spend the money to pay the taxes that you owe is irrelevant. You owe them so pay them. To try to cheat on your taxes is just leaving yourself open to further trouble - paying not only what you owe, but also interest and penalties.
2007-02-13 13:05:47 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
WOW, why not make it real illegal and offer to pay people for their receipts? Maybe $1 for every $100 in receipts?
2007-02-13 11:41:08 · answer #5 · answered by me4tennessee 6 · 2⤊ 0⤋
Ask your tax auditor before he starts, they have a bunch in the back room of prior clients....they keep them and nobody is using them. Plus it is a great ice breaker to start with.
2007-02-13 11:46:07 · answer #6 · answered by Outside the box 6 · 1⤊ 1⤋