quote:Originally posted by JaneYIS:
I'm not worried because everything we claimed is legit, but it's just the sheer volume of work to get it all together that's intimidating.
Thanks!!!
Does not matter if it's legit, auditors want proof (often beyond just a receipt) and several will not take the initiative to ask for deductions to be substantiated and just discount items as not deductible. If you are not using an attorney, I would on every copy of any receipt, cancelled check, etc write down exactly what the expense was for and the reason for it.
True story here, once while being audited I had several canceled checks to my doctor, since I had not written down what they were for and just labeled them as medical (figured this was common sense and didn't need to explain any further) the auditor said "how do we know you were not just buying a car or something from him". Anyway, I had to have my doctor print off statements showing what the charges were for before they would allow the deduction. ADOR is not a bunch of nice or fair people, if they go through the trouble to audit you they look for anything that could in any possible way be a problem and will bend the rules to find one.