Good records equals big savings - both when you’re preparing your return and if you’re asked to provide proof in an audit. Take a few minutes out and catch up on your 2016 record keeping. By the time April rolls around, you won’t remember everything, and that will cost you money and anxiety when you’re ready to do your taxes.
If you’re someone who extends to give yourself more time to get your records in order, take a moment to consider how much this could be costing you. Will you trust that you will remember every donation, every business expense, every repair, what every receipt was for?
Keep in mind that the IRS will accept contemporaneous records. They will accept bank and credit card statements as proof of payment but not proof of purpose. You need to have those receipts categorized, and they need to match your calendar records.
Check out this great summary from Forbes magazine about how much you could be leaving on the table. Read article