"As a general rule, the most successful man in life is the one who has the best information." - Benjamin Disraeli We believe in the power of information. That's why we try to keep our clients up-to-date on new tax developments through client newsletters, our Website and other communications. If you need more information about a particular issue, don't hesitate to give us a call, 660-747-8518. TAX TIP: Keeping all the tax records required by law is a necessary evil. Since you're probably stuck with some recordkeeping responsibilities, you might as well make the "best of a bad situation.? For starters you can implement a system for tracking income, expenses, receipts and so on. Here are several suggestions to help you on your way: Maintain a contemporaneous diary. This is the easiest way to record those expenses that may be claimed as itemized deductions on your personal tax return. You should maintain a separate ledger for each category of expenses. File expense items and income items in separate folders. In general, you must document the date, the amount of the expense, the business purpose and other details depending on the nature of the expenditure. Keep receipts for lodging and all other T & E expenses over $75. Review your expenses on a regular basis. It't much easier to utilize tax-planning strategies during the year if you know where you stand. Stay flexible. Make the system a benefit, not a burden. Store your records in a safe place. Even the best recordkeeping system in the world won't do you any good if you can't retrieve the records. NOTE: The statute of limitation on IRS adjustments is three years. However, the limit is doubled to six years for any return that omits 25% or more of an individual's income. And, there's no statute of limitation whatsoever if fraud is involved. To be on the safe side, we recommend that you hold onto your tax records for at least ten years. ______________________________________________________________________ REMINDER: A professional tax return preparer can help you keep your records ship-shape. Better organization can lead to tax savings on your return. We would be glad to provide whatever assistance we can in this area. Call 660-747-8518 for more information. _______________________________________________________________________