Best Tax Preparation Services in Jackson, TN

The Inflation Reduction Act, signed into law, empowers the IRS with $80 billion dollars in funding. The IRS will be hiring 80,000 new employees doubling its staff and upgrading its technology. This will potentially lead to an increase in correspondence and field audits. What this means for the taxpayers is that there’s never too much documentation especially for small business owners. Small business owners the required documentation is as follows: Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts.Documents for gross receipts include the following: Cash register tapes Deposit information (cash and credit sales) Receipt books o Invoices o Forms 1099-MISC Purchases are the items you buy and resell to customers. If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Your supporting documents should identify the payee, the amount paid, proof of payment, the date incurred, and include a description of the item to show that the amount was for purchases. Documents for purchases include the following Canceled checks or other documents reflecting proof of payment/electronic funds transferred Cash register tape receipts Credit card receipts and statements Invoices Note: A combination of supporting documents may be needed to substantiate all elements of the purchase.