Is your credit card statement naked?

How about your checkbook?

Credit card statements not supported by receipts and/or invoices are considered “naked.” The same is true of the checkbook.

Make Digital Receipts to Save Time and Deductions

Lack of adequate documentation is by far the most common reason taxpayers lose deductions during IRS audits.

Whether you use sophisticated accounting software like QuickBooks or stick with time-honored handwritten ledgers, you need to understand one thing: Your accounting records alone are not proof that you are entitled to any tax deductions. You need backup documentation to prove your expenses to the IRS.

Even in this day and age, the humble receipt is the best documentation you can have. But storing and keeping track of ... Log in to view full article.