QuickBooks Entries Are Not Proof for Business Deductions

That’s what a U.S. district court told a taxpayer who held ownership interests in at least 49 businesses, including commercial rental properties, hotels, supermarkets, liquor stores, a pet store, and a bingo parlor. He filed for a refund based on net losses from these businesses, but he failed to produce any original source documentation to prove claimed expenses. And his tax return preparer didn’t see any bank statements or canceled checks nor have any personal knowledge of P&L and payroll information. Entries in QuickBooks do not qualify as business records. #IdeaoftheDay