[Leica] OT: Accounting questions - EU/US

[don.dory at gmail.com (Don Dory)]

My father had the misfortune of believing the IRS on certain deductions back
in the early 60's.  When audited the IRS disallowed the deductions and my
dad again mistakenly made a stink as he still lived in the world where your
word was your bond.  Fifteen audit later my parents had the process down
pat; everything and I mean every penny was contemporaneously documented with
all appropriate reciepts, bills, mileage, phone logs, house plans and
seperate phone lines.  Just before retirement another audit came along and
my parents dutifully show up with the two carts of documents.  The IRS agent
would ask for documentation, see the mountain, say, er thats fine.  My
parents of course insisted that as long as they had taken several days off
the agent could do them the courtesy of going over the whole set of
documents to make absolutely sure that there were no improperly taken
deductions.  Two days later and the IRS agent admitted that my parents had
not taken all the deductions possible and decreased the calculated tax by
several thousand dollars.  Twenty years later and a far more challenging tax
situation and not audits.  :)

Don
don.dory@gmail.com


On 7/13/06, jon.stanton@comcast.net <jon.stanton@comcast.net> wrote:
>
> I know the temptation is there to be "creative" with your tax
> deductions...especially as a self employed person....my advice
> "Don't"...It's just not worth the headaches, fines, jail. If they audit
> waitresses on her tips...and she doesn't have a "tip-log" showing the 
> actual
> plus what she tips the busboys, bartenders, hosteses....she is sunk.  I've
> been to many audits (fortunately none of my own clients) and am impressed
> with the flexibility of the IRS...If you can reasonably document what you
> have reported you are usually safe...
>
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