AMD Snacks Posted September 11, 2017 Share Posted September 11, 2017 I'm just curious about the reality of being audited by the IRS for bulk vending. I know i've been told their weary of all cash businesses, I keep my records best I can, and i'm working on getting better. Link to comment Share on other sites More sharing options...
musser Posted September 12, 2017 Share Posted September 12, 2017 I have been audited several times. Not a big deal. As long as you have good records. The IRS does not like cash businesses. Been a long time since I was audited though, I think they have had staff cut backs. There are so many legal ways to offset business expenses there really is no excuse for getting in tax trouble. But what they will look for: receipts are a must for purchases, create a purchase order system so you can easily find your receipts; document mileage, keep a note book in your vehicle to keep track of the mileage of business use; be careful of travel expense, keep good records of meals and hotels; be careful of using a deduction for business use of part of your home, be very specific and detailed; that's the main areas I think, remember: receipts, receipts, recieipts, if you don't have them the expenses will be disallowed. Link to comment Share on other sites More sharing options...
AMD Snacks Posted September 12, 2017 Author Share Posted September 12, 2017 Yea receipts are my hardest thing to keep track of. Just not organized enough I think, but I'm working on it. Good to hear it's been a while. What about route purchases? Is just an informal paper stating details and signed good enough? Link to comment Share on other sites More sharing options...
musser Posted September 12, 2017 Share Posted September 12, 2017 Since a route can be depreciated (equipment) it is a good idea to have a good inventory of what you are buying and cost. A bill of sale. Link to comment Share on other sites More sharing options...
Kevinator Posted September 12, 2017 Share Posted September 12, 2017 There is no doubt about it, the KGB is one scary outfit. I know, I have faced off against them more than once. But if you play it straight and just use basic business practices you shouldn't have any worries. Even if you don't play it straight and fudge on your gross receipts. As long as they can't track it, you should be fine as well. Of course you can't live in a mansion and drive luxury cars and send your kids to private schools, then put $35,000 on your 1040 Form. If you do, you will have problems with them. Link to comment Share on other sites More sharing options...
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