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Article: Survive an audit: organized records can ease the tax audit process.
- Article from:
- Farm Journal
- Article date:
- January 15, 2003
- Author:
CopyrightCOPYRIGHT 2003 Farm Journal Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Organized records can ease the tax audit process
Once you're faced with an audit, "you're kind of behind the curve," says Bob Anderson at Southwest Minnesota Farm Business Management Association.
"But if you have really good records and are cooperative, generally speaking, audits go pretty well," Anderson says.
Personal expenses that you deduct as farm expenses are the most common form of misreporting among farmers and ranchers, according to the Internal Revenue Service. It's helpful if you use the correct terminology for entries in your accounting program and on the memo line of checks.
When you prepare your return, be sure your ...