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Form 8867

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    Form 8867

    In the new Form 8867, LIne, 27, there is a checklist of documents that you rely on for the Schedule C.

    d. Records of gross receipts provided by taxpayer
    e. Taxpayer summary of income
    f. Records of expenses provided by taxpayer
    g. Taxpayer summary of expenses

    First of all, what is sufficient to be considered "records" instead of a "summary"? Obviously, a list of gross amounts for the whole year should be considered a "summary". But if the taxpayer provides a monthly breakdown of the income and expenses, can it be considered "records" rather than a "summary"?

    Also, if the tax preparer depends on a "summary" instead of "records" to prepare the Schedule C, will he be in trouble?

    #2
    I am interpreting that to mean you, the tax preparer, may rely on a "summary." The IRS, on the other hand, would require "records" in an audit. And those records would include, not just a monthly breakdown by the taxpayer, but the actual bookkeeping software records and bank accounts to back that up.

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      #3
      Originally posted by Burke View Post
      I am interpreting that to mean you, the tax preparer, may rely on a "summary." The IRS, on the other hand, would require "records" in an audit. And those records would include, not just a monthly breakdown by the taxpayer, but the actual bookkeeping software records and bank accounts to back that up.
      Is the preparer required to inspect the "records" of the taxpayer before preparing the Schedule C?

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