Business owners and freelance professionals alike must be aware of the importance of keeping careful records of their business expenses in order for these tax deductions to be accepted. A good tax attorney can only do so much to help your case if you do not have strong evidence to support your tax claims.

I have blogged about news stories of unsubstantiated tax deductions in the past where taxpayers who were unable to provide evidence of their business expenses were disallowed from receiving tax deductions. A tax attorney can only help you file documents if they still exist.

In this economy where money is tight, don’t risk losing out on your tax deductions by not keeping important documentations of your business expenses. I always encourage taxpayers to keep their tax-related documents carefully in case they need to substantiate their tax claims in the future.

CCH (http://intelliconnect.cch.com) reports:

Some Estimated Employee Business Expenses Deductible, Other Unsubstantiated Expenses Disallowed

An individual was allowed to deduct an estimated amount of unreimbursed employee business expenses; however, deduction of other unsubstantiated expenses was disallowed. Although the individual had recorded mileage in a day planner, the day planner was later discarded, and the individual did not attempt to reconstruct the record. Similarly, he was unable to show receipts or other evidence of his expenses for an overnight business trip. However, he was allowed to deduct an estimated amount of his other unreimbursed employee business expenses, in light of the record and his highly credible testimony.

As the year draws to a close and many taxpayers are starting to prepare their tax planning for 2010, it’s a good idea to not throw away any documentation that may be useful to your tax filings.

This is very similar to the recent case of the federal tax lien filed against California Governor Arnold Schwarzenegger–proving once again, that no one is immune from the IRS grasp.

Don’t risk losing out on money that is entitled to you. Save your expense records to save your funds.

Tax Resolution Services is a team of expert tax attorneys, CPAs, and tax resolution specialists who are here to offer you tax help. Call our office today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com

More Tax Help, IRS News and Tax Relief Tips:

1. Owe Back Taxes? Worry Not: Ten-Year Statue of Limitations Could Dissolve Your IRS Debt
2. Tax Help For Taxpayers: IRS Plans to Simplify Tax Collection Notice Letters
3. Tune In For Tax Help Tips on Big Biz Show Every Thursday From Now Until April 15th!
4. Tax Help News: IRS Enforcement to Get Priority, Big Bucks in 2010
5. Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season

Tags: business expense deductions, IRS help, Michael Rozbruch, tax attorney, tax deduction tips and advice, tax expert, tax help, tax record keeping, tax relief

This entry was posted on Thursday, December 17th, 2009 at 11:49 am and is filed under IRS help, Seeking Professional Tax Help, Tax news and tips, income tax relief. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.