Tax Proposals Could Add to Record-Keeping Burden
As if you didn’t already have enough tax record-keeping to contend with, some proposals are afoot that could add extra work and expense for compliance.
According to the New York Times, the budget proposed by President Bush, if approved, would “require detailed reporting of credit card transactions to the Internal Revenue Service. Another would require most owners of small businesses to report any payments above $600 to corporations, like Federal Express, for services.”
The measure related to the credit card transactions is designed to provide a records trail that would enable more audits of small businesses. From the small business perspective it also would add a huge paperwork burden. You’d not only have to match the credit card receipts with other records, but deduct returns item by item.
