The number one reason taxpayers loose during a tax audit is lousy record keeping.  Poor record keeping puts the tax payer in a position of not being able to prove his/her deductions.

Keeping good records is essential to maintaining a strong position if audited by IRS.  Tax payers who are audited and have an organized bookkeeping or accounting system to support the figurers on their tax returns worry a lot less the tax payers who don't.

Documentations to support your tax returns, especially if you are self-employed, has to be one of your first priorities.  If you are like many people, bookkeeping is not one of your most favorite task.  To make things easier, go to the office supply store and ask the clerk for an accordion  file.  Each month put ALL your receipts into the file for each month.  Write on each receipt what the monies were spent for.

If you absolutely do not want to sort out or post your receipts onto a ledger, just stuff your receipts into a shoe box and  give the entire file to your tax person alone with a blank check at the end of the tax year.

You will be surprised at how confident you will feel once you start to keep good records of your expenses.  Should IRS decide to audit you, you will be more then ready to respond to any questions they might have.

To deal effectively with IRS you need documentation, because with IRS, you are guilty until you can prove yourself innocent.

This article was written by Cassandra Ingraham, a Tax Accountant www.taxeswilltravel.com