You’re being audited and you’re missing records, now what?

So you’re facing an audit and your records, or a portion of them, have gone missing. Or, you’re just a normal entrepreneur chasing from one project to another and your record keeping habits were just, well, not habits at all. You may not be able to produce receipts, bills or other written documentation for all the items on your tax return. That’s when you must turn to reconstructing your records or gathering together the best proof you have for the IRS.

The law does not require perfect record keeping habits—it’s just simpler that way. It’s perfectly legal to reconstruct your records in any way to provide adequate evidence that what you claimed on your return was, in fact, accurate.