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    #16
    New?... Eh... Depends on definition...

    Originally posted by Uncle Sam View Post
    MAJ - you seem to be new on this board and a fairly new tax pro.

    You apparently haven't been through the audit process yet to actually experience what documentation is required to get IRS clearance.
    New here? I've been around for a short while - more vocal recently. I've been doing taxes for a number of years. I totally agree with the statements made (what did I do last year, how much can I do) - I think we all have some clients like that. I have always pushed my clients for full documentation. Many provide - some just have lists - some no clue, but of course want to take hte maximum they can take even if they (most likely) donated very little.. I try to instill in them the need to have all this information readily available. I am not here to audit them down to the dime but in the event of an IRS initiated audit they need to have this information available or they will pay the difference and then some. It's a rough place to be - Like it was said - you tend to know your client base over time. There are some I scrutinize more than othesr based on their prepardness, answers and sometimes attitude. I've got to cover my @$$ first. I have not gone through a charitable donation audit (SS Disability lump sum distribution audit, yes). Most of my clients really don't stand out more than the others. I scan & keep copies of all documents received. If the client has other deductibles I have them list and sign the paper. Scan a copy for me. I may have to re-think that....
    Matthew Jones
    Tax Preparation
    Computer Consultant


    Tax Season is here!
    Make sure everything is working, extra ink or toner is available, Advil in top drawer!

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      #17
      Receipts R Us

      Please put this in the Rip Van Winkle category, but just awakening to read this thread:

      I thought under current rules ALL contributions require a receipt. Yes, I know things get antsy when you throw $5 in the Salvation Army kettle, but....just don't toss a $20 bill into the church plate every Sunday and then expect to claim that without problems.

      Also that a copy of a check is now more or less worthless upon audit, except perhaps to substantiate payment was made on something separately supported by a receipt. (Consider the situations where someone writes a check to the church but in reality is buying a Christmas tree at a lot operated by said church, or perhaps is paying for bus fare on a church-sponsored trip.)

      Reminds me of a creative fellow (years ago) who would write a check each Sunday to XYZ Church in the amount of the change collected from the Sunday School offerings. (Yes, he was a coin collector and those were the days when it was not unusual to toss loose change into the collection baskets there.) It seems he later encountered a problem with the IRS, even though he had a handful of canceled checks made out to the church.

      As for the comments on what I "require," I generally tell my clients I need to see the receipts. Aside from verifying the amounts (and possible reductions in same for value received) another issue is weeding out "charities" which just are not such, but rather PACs and similar. For established clients, I will leave some wiggle room there if they can't easily find the receipt for their $10 donation to the March of Dimes.

      FE

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