Tuesday, September 7, 2010

The IRS and QuickBooks

Over the last few months I have been hearing a bits and pieces about the IRS purchasing copies of Intuit’s QuickBooks to help facilitate audits. As I heard more and more on the subject, what could be discounted as a rumor, now can be considered as a possibility and something business owners should consider as a risk when they are requested to provide information for an audit by the IRS.

Here is a link to a great article from the Tech Accountant on the subject.

QuickBooks helping the IRS Audit your Books?

The IRS may request your QuickBooks data so they may review it. The key problem on this is the IRS will now have access to all of your information for all of the years you have in QuickBooks. This would include years beyond what was requested.

You will need help!

I suggest that you contact your accountant and request that either they assist you with creating a file for the IRS or that they recommend an individual who can create a data file for the IRS to have.

The data file, created from a backup of your main file, should contain only the years that the IRS requests. The data should match what is in your actual file, which means you will need to add starting balances to the data for the beginning of the years that the IRS has requested to review. This way the IRS gets only the data they requested to review and you can hand them an accurate complete file for them to review.

If your accountant does not have a recommendation or the skills to assist you, not everyone does. Please give David Chermak a call at 414-238-6724. I will be happy to assist you and provide you with a quote for my services based on your needs.

QuickBooks Pro 2010

QuickBooks 2010 The Official Guide (Quicken Press)