Receipts Prove the Story You Put on the Return
Explain why tax records must connect income, deductions, basis, and return positions to supporting evidence.
The move: keep records that prove the tax elements, not just records that prove money moved. The evidence chain A tax return is a claim about income, deductions, credits, payments, and basis. Records support that claim. For a business expense, useful records usually show amount, date, vendor, business purpose, and any personal allocation. For income, they show source and period. For assets, they show cost, ownership, use, and disposition. Why this works The burden of proof sits with the taxpayer. Good records reduce ambiguity because they connect the return line to the real-world transaction. They also make next year easier:…
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