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#33 Recordkeeping Self-help
January 2011
Hello Indies,
Here, there and everywhere I've told indies that the IRS does not require a sole proprietorship to keep records in a specific format.
** The IRS simply requires that you have an accurate record of income and expenses.
** Your records must show the source of an inflow of money and the purpose of an outflow if you are claiming it as a business expense.
** Your income must match your lifestyle.
** You must be able to translate your records into useable information for yourself or your tax pro so that an accurate tax return can be prepared.
** Your records must make sense three or more years from now should you be audited.
As you gather info for your 2010 tax return, check out the questions other indies have grappled with regarding keeping records. Might help.
Also, please check out my revised The Confident Indie: Five Easy Steps which includes worksheets to help with your 2010 tax return.
Best,
June
june@junewalkeronline.com | 
