A Journey Through Subchapter S / A Review of The Not So Obvious & The Many Traps That Exist For The Unwary: Part XII – A Reoccurring Theme: Don’t You Know That Keeping Adequate Business Records Is Required?

In this Part XII of my multi-part series on some of the not-so-obvious aspects of S corporations, I explore a consistent theme – taxpayers lose fights with taxing authorities when they fail to maintain adequate records.  Keeping adequate records is vitally important to S corporations and their shareholders or, for that matter, all taxpayers. 

Background 

Time and time again, taxpayers lose their battles with the IRS and other taxing authorities for the same reason – failure to maintain adequate records.  One of the greatest services that tax advisers can provide their clients is preaching the virtues of maintaining good records.