Why Business Owners Don’t Need To Keep a Box of Receipts Anymore
If you don’t use cash you don’t need the receipts because all the transactions are on your bank, credit card or investment statements.
The IRS is not gonna sit in your office and go through a box of receipts trust that!
If you still want to hang on to your receipts because you fear the IRS then staple the receipts to the back of the statement.
If you pay people cash “under the table” keep the receipt so you can write off the service or product you bought.
Speaking of paying under the table. It’s crazy because the person you paying ain’t gonna pay taxes and you think you saving money.
But when the IRS ask you on your tax return did you have any contractors that needed a 1099-NEC or 1099-MISC you ain’t gonna be able to write those dollars off and if you do you will be flagged and sent a letter.
Speaking of 1099’s.
If you have a Cash app, Paypal, Square, Venmo, Amazon, Ebay, Etsy, Sound Cloud or any other account where you received money make sure you check the dashboard in those accounts for a 1099-K.
Just to be sure!
If you miss this 1099-K the IRS algorithm will catch it and when you file your taxes you will under report the money you owe and thus will receive a lovely auto generated letter from your friend the IRS.
No worries about Zelle. For now.
Zelle is owned by a group of banks who don’t charge a fee, but I’m sure the IRS knows that plenty of people get paid though Zelle and one day have those banks send into to them aboutYou!
Just sayin’
