I am a private software/hardware contractor trying to save money on my taxes. I bought about $3000 worth of stuff on December 30 and 31st of 2006 so that I could write them off of my 2006 taxes. (With Section 179, I can deduct all $3000 off of 2006?) Is it a good idea to send in copies of these receipts with my tax filing just in case the IRS gets suspicious?
2007-04-15 01:06:34 · 9 answers · asked by John W 1 in Business & Finance ➔ Taxes ➔ United States
You don't normally send receipts to IRS when you file taxes
I file form 1065 and the form lists the deductions (rent, etc) but if you have other types of expenses such as office supplies, office equipment there is a line where you put it called Other Deductions which requires an itemization of expenses where you attach a sheet of what those deductions are.
My suggestion is NOT to submit the receipt, but simply a list of all those $3,000 expenses. When you are audited that's the time you show your receipts
2007-04-15 01:15:37 · answer #1 · answered by imisidro 7 · 0⤊ 0⤋
Do not send in receipts with your tax return, the IRS will throw them away. Section 179 is accelerated depreciation and should be used only on depreciable assets, (assets expected to last longer than 1 year). Some of the items may be eligible to be deducted as a line item. Keep the receipts with your tax docs in case of an audit.
2007-04-15 02:21:55 · answer #2 · answered by Qinella 1 · 0⤊ 0⤋
Judy makes a good point about expensing items. In fact its a very good point because if you bought items on the 31st but did not place them into service until the 1st you cannot take depreciation in 2006.
I agree that you should not file receipts with your return. As an ex-taxman, I would be healthily suspicious of any return with receipts attached.
2007-04-15 04:16:14 · answer #3 · answered by skip 6 · 0⤊ 0⤋
No, don't send them a damn thing more than than what's required on the return. If they want more, let them ask. Same thing if you get audited, if they ask for receipts, walk in there with the receipts only. Don't volunteer anything, those sticky-fingered sharks are always fishing.
2007-04-15 03:02:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, don't send copies of receipts with your tax return. You would have given them information to use to decide to audit you.
Why take that risk?
2007-04-15 02:28:48 · answer #5 · answered by Steve 6 · 0⤊ 0⤋
No, if they have questions, they'll contact you and ask for the receipts.
Depending on what the purchases are, you can very possibly expense them for 2006 rather than capitalizing them and depreciating them.
2007-04-15 04:06:32 · answer #6 · answered by Judy 7 · 1⤊ 0⤋
You will need it when the IRS will do an audit on your tax return. Otherwise just keep it.
2007-04-15 01:09:33 · answer #7 · answered by Batman 3 · 0⤊ 0⤋
Send them copies, and you keep the originals.
2007-04-15 01:09:01 · answer #8 · answered by Anonymous · 0⤊ 0⤋
yes it is good idea.
2007-04-15 02:36:44 · answer #9 · answered by p deepak 1 · 0⤊ 0⤋