Records must be
Clear and Proper as Required under the USA Law
Under the USA
Tax law anyone carrying on a business must keep proper records to
“enable the Tax Commissioner to ascertain the correct tax
liability they have”. You have to be able to explain all
transactions in your business. This includes recording sufficient
information for the IRS to ascertain your correct taxable profit
and confirm your deductible expenses.
The IRS requires you to keep all records
in the English language and those records must be clear enough to
enable them to work not only the correct taxable income of your
business but also the correct taxable income of you as business
owner. Your business records must be retained for at
least 5 years, from the date when your tax returns are lodged.
In some cases the IRS can go back 10 years if they so
require.
Your records must be kept safe in an
area
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