Keeping Tax Records

receiptsA guest post by accountant, bassoonist, and piano teacher, Tairsa Mathews

One of the most important things you can do is to keep accurate records. Keep your receipts, keep your bank account separate, and keep track of the money you make. If ever you are questioned about issues with your taxes, the IRS will almost always leave you alone so long as you can show that you’ve kept accurate records. If you are asked for information and your files are clean and organized, they are likely to leave you alone because your chances of error are smaller. I recommend having a specific filing drawer or container that is just for business use. Keep your records for 7 years; after that you can dispose of them.

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