Are you uncertain of what happens if you get audited and don’t have receipts? As some of the top accountants in Chicago, Illinois, we’ll explain steps to take if this situation applies to you. After learning more, don’t hesitate to give Odoni Partners LLC a call.
Taxpayers may receive a notice from the IRS that they are auditing them or searching for evidence that their financial claims and circumstances are accurate. For some who can’t find or no longer have access to their receipts, this can become a frightening situation, but options are available.
Working with an accountant or tax professional can help you find other records or documents to verify your finances. Legitimate expenses that go towards your business don’t always require receipts, as you can obtain other proof. However, personal costs, gambling, and traveling for pleasure are not eligible for deductions.
Some methods of proof you can use for your audit include credit card statements, bank statements, physical records, and more.
If you don’t need to pay the government additional taxes, you may request an audit reconsideration and obtain as many records as you can.
If you’re nervous about what happens if you get audited and don’t have receipts, don’t panic. Many items are recoverable, but it’s vital to know that some are extremely difficult or impossible to recall if you don’t have exact records during the occurrence dates, such as the following:
If you’re trying to show proof to the Internal Revenue Service that you have expenses without receipts, consider these options:
Remember to hold onto your receipts, documents, and expense records in the future for tax purposes. Working alongside a trusted tax professional can also keep you on track for filing and what you may owe. It’s a good idea to keep your information organized and categorized in a safe place. Our business understands how to properly file self-employed taxes and prepare for an audit. Now that you know what happens if you get audited and don’t have receipts don’t hesitate to contact us.
Call Odoni Partners LLC in Chicago, IL, at (312) 440-0960 or in Wheaton, IL, at (630) 665-2700 for financial advice and services.