IRS Requires Documentation to take Certain Tax Deductions


Recently enacted laws require tax preparers obtain certain assurances from taxpayers in conjunction with the preparation of income tax returns.

In addition Cash Contributions must now be fully documented. This means that you must adequately provide the tax preparer with information sufficient enough to take the deduction. For all contributions of $250 or more a receipt from the charity is required that indicates no goods or services were provided in exchange for the donation. Non-cash donations must be itemized, a listing of items donated, the date donated and to whom. If the amount is over $250, you must have a receipt from the charity. Vehicle donations have additional limitations and you should contact our office for guidance if you decide to donate a vehicle.

Employee business expenses are another area of concern and will require additional documentation on the part of the taxpayer. Vehicle logs of business mileage are essential. Entertainment expenses need to be documented including the business reason for the expense and the attendees.

The one thing you should take away from this update is that the tax preparer can no longer accept same as last year. Please take some time and review your records for business deductions and charitable donations.

As always, feel free to contact our office for further explanation of clarification of any tax issues you might have.

About this Entry

This page contains a single entry by Robert Iracane published on February 1, 2009 9:00 AM.

January E-CPA Newsletter was the previous entry in this blog.

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