[Dixielandjazz] 1099's

[dwlit at cpcug.org]

I was audited in 1988. I had been told by a tax lawyer musician not to be
afraid of the audit, but to consider it an educational opportunity. They
weren't out to get me, but to determine whether I needed to be gotten.

The auditor spent 3 whole days *in my office*, even took receipts with her
when she left. She examined literally every cent of *all* my finances. She
asked questions, gave me a lot of tips. She found only one taxable
error--a $250 deduction for food bought on the way to various gigs.

She was very pleasant, if businesslike, quite attractive, and sitting as I
was at my computer table while she sat at my desk, I had a nice view of
her veddy nice figure...

So keep all your receipts, bank and credit card statements. and don't be
stupid in claiming deductions. As Steve said, deduct aggressively, but I
would add: Be able to explain convincingly how every one of them relates
to your music business.

--Sheik
http://americanmusiccaravan.com

Steve Barbone wrote:
>
> As Tom Wiggins says, just have the receipts to back up what you deduct and
> declare the income. Be aggressive in you deductions, no harm in that. Then
> if they audit you, they'll just take a few bucks if they disallow. And
> like
> John McLernan says, DO NOT VOLUNTEER INFORMATION JUST ANSWER QUESTIONS
> ABOUT
> WHAT IS ON YOUR AUDIT NOTICE. Do not bring all records, just those which
> they ask for.