If you ever asked yourself why your tax professional provides you with a tax organizer and requires certain documentation from you to prepare your income tax returns, the case of G.F. Roy (TC Summary Opinion 2016-77) provides a good glimpse of the importance of having the proper documentation to substantiate tax deductions.
A consultant was denied Schedule C deductions by the IRS for car and truck, depreciation and legal service expenses related to his business. In addition, he was found liable for an accuracy-related penalty. Why? He failed [Read more…] about Learn Why a Consultant Was Denied Auto and Legal Deductions by IRS