DOCUMENTATION IS THE KEY

Occasionally I get asked about the deductibility of conventions and meetings to foreign countries. Attached is an article that provides a good summary. You will note that there is a list of the countries that have preference. Don’t forget, the key to “audit proofing” your records is Documentation... Documentation... Documentation!

http://www.bizactions.com/index.cfm/ba/e100/fa/117057430G1603J2842411P8P1402T1/

HOW LONG SHOULD I KEEP MY RECORDS?

Larry, I've been cleaning house and was wondering how long I need to keep all of my old tax papers.

Barbara

Barbara, here's a link to our Record Retention Guide on our website. It shows you how long to keep your records for tax purposes. I hope this helps.

Larry Kopsa CPA

WHAT RECORDS SHOULD I KEEP?

Larry, I am getting ready for my tax appointment and I have all of these piles of information for 2008. That's not all, I have a storage room of boxes from years and years. Can you help me? What do I need to keep?

Irma

Irma, now is a good time to get started having organized records. You probably already keep records in your daily routine. This includes keeping receipts for purchases and recording information in your checkbook. Good record keeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience.

Good record keeping will help to "Audit Proof" your return. Records help you document the deductions you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination. Normally, tax records should be kept for three years, but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.In most cases, the IRS does not require you to keep records in any special manner. However, you should keep any and all documents that may have an impact on your federal tax return:

• Bills


• Credit card and other receipts


• Invoices


• Mileage logs


• Canceled, imaged or substitute checks or any other proof of payment


• Any other records to support deductions or credits you claim on your return.

For more information on what kinds of records to keep, you can look at IRS Publication 552, Record keeping for Individuals, which is available on http://www.irs.gov/.We have a detailed record retention checklist. If you would like a copy, email Carrie at ckadavy@kopsaotte.com and we will send you a free copy.

Larry Kopsa CPA