10/14/2026
🧾 Good bookkeeping can make a big difference at tax time—and during an IRS audit!
A recent Tax Court case highlights what can happen when business records are incomplete: the court upheld nearly $60,000 in unreported income and denied several deductions because the taxpayers couldn’t provide adequate documentation.
The takeaways for small business owners:
✅ Keep business and personal finances separate.
✅ Save receipts and document the business purpose of expenses.
✅ Clearly track loans and transfers so you can explain deposits that aren’t income.
✅ Back up your records digitally.
Although the taxpayers avoided an accuracy-related penalty because the IRS failed to prove required supervisory approval, the income adjustment and denied deductions still stood.
At ABC Pro Solutions, LLC, I help small business owners keep their books organized and prepare for tax season year-round. Need help catching up? Let’s talk!
Read the article below. 👇
MD M. Rahman & Syeda Momotaz v. Commissioner , Docket No. 8286-23 (T.C. Oct. 7, 2026) (Bench Op. by Nega, J.) In MD M. Rahman & Syeda Momotaz v. Commissioner , Docket No. 8286-23 (T.C. Oct. 7, 2026), the United States Tax Court delivered a bench opinion under Tax Court Rule 152 pro
