An IRS audit is kind of like a flat tire. It’s inconvenient and frustrating, and if you’re lucky you may never have to experience one. But if you do, you’ll be sorry if you aren’t prepared.
Fortunately, you can use the information you’ve already collected (or will collect) for your 2017 tax return to prep for an audit. Go ahead and use the following as a checklist of items to keep on hand:
• A copy of your signed tax return and all supporting documents
• Copies of any worksheets that support your return
• Forms W-2
• Forms 1099 (all forms)
• Forms 1095 (to support having valid health insurance)
• Business Forms K-1
• Canceled checks of deducted items
• Receipts supporting deducted items
• Support for all your itemized deductions
• Child care receipts and reporting documents
• Bank statements
• Investment statements
• Mortgage statements (including annual interest-paid Forms 1098)
• Credit card statements
• Copies of any major purchases or sales (i.e., home closing documentation)
• Receipts for any charitable donations (cash and noncash donations)
• Substantiation for value of large donations of property
• Proof of fair market value for any inherited items of value
• Mileage logs for business, charitable and medical transportation
• Proper documentation for business meals and cellphone use
• Educational expenses
FYI – Always use copies of original records during an audit. Keep your original documents.
