Nine Tips For Better Tax Recordkeeping

Did pulling your records together to complete your 2011 tax return reveal shortcomings in your system? Here are nine tips that can improve your recordkeeping and help minimize your taxes.

New Business: More Small Business Audits

The IRS plans to conduct random audits of 2,500 returns from 2010 filed by corporations with less than $250,000 in assets. The results will be used to update the IRS formulas for selecting returns for audit.

Prepare A Home Inventory

Preparing an inventory of your personal possessions can seem daunting. Without evidence, insurance companies may not be willing to reimburse your losses from fire, theft, or natural disasters.

IRS Increases Correspondence Audits

As part of its plans to increase audit coverage, the IRS will be doing more correspondence audits – notices mailed to taxpayers that typically focus on a single item on the tax return.