What does the IRS want to see for an online business?

If the IRS were to audit me for my online business, what would they want to see? Thanks in advance!

They'll want to see ALL of your business records. Proof of income claimed and proof of all business expenses. The law requires you to keep accurate, timely, and complete business records of all income and expenses claimed.

If you're claiming any personal deductions or credits -- especailly the EIC -- they'll want to see proof of eligibility for those as well.

TFTP Report It

Proof of income.

How do you get paid? Credit cards? Paypal? Make sure you keep the records.

Just as important, proof of expenses. If you are claiming mileage to the post office, you'd better keep a written log of when, where, how far.

Your business' full set of accounting records, especially invoices, bank account statements, canceled checks... etc.

Also, if the tax return was prepared by a preparer, contact your paid preparer in case you need help on explaining a particular treatment on the tax return.

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