Audit, Ammend Question, Docs to support.?

Question

Thanks for the answers all on my last post.
I will amend my taxes as advised but what is supporting documentation of My Income. I dont have alot of 1099Misc. I keep my records in Quickbooks. When I spoke with Ma. Dept of Rev on the Audit they said anything I print is no good that I need Bank Statements. Is this correct? Or can I create my reports on Deposits myself?

Answer 1

I agree with Bostonia I would rather have too much paperwork with me than not enough. I also agree that you should have someone represent yourself rather than going it alone. Better safe than sorry. :)

Answer 2

I'm stepping in the middle here, but I'll give it a go. You should have all your bank statements as the IRS watches these when they are planning an audit. So I'd definitly pull them.

The IRS is a little unpredictable in the correctness of their answers, so, given the circumstances, you may be able to print your own documents. Do you 1099 yourself as an employee?

It's dangerous to represent yourself to the IRS. You may want to hire someone or contact the Taxpayers Advocacy Department. You local rep in on the IRS website.

Answer 3

Your financial records, backed up by bank records, should provide adequate proof of your income and expenses. Quickbooks by itself or bank records by themselves don't account for much. But combine the two and you have powerful evidence of what happened.