Tax in Action: Practical Strategies for Tax Pros

The Legal Case for Better Books: Why Recordkeeping Isn't Optional

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Jeremy dives into the often-overlooked legal requirements for taxpayer recordkeeping under IRC Section 6001, explaining why accurate books aren't just nice to have: they're mandatory. He breaks down the Cohan rule (and why it's widely misunderstood), explores how good recordkeeping can shift the burden of proof to the IRS under Section 7491, and offers practical ways tax professionals can encourage better client recordkeeping without becoming bookkeepers themselves.

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  • (00:00) - Introduction: The Struggles of Accounting Firms
  • (01:06) - Challenges with PBC Data
  • (01:56) - Balancing Bookkeeping and Tax Services
  • (04:03) - Legal Requirements for Bookkeeping
  • (04:43) - The Cohan Rule Explained
  • (10:23) - Penalties for Inadequate Record Keeping
  • (25:01) - When Cohan Doesn't Apply
  • (30:06) - Ethical Considerations for Tax Practitioners
  • (34:39) - Encouraging Better Bookkeeping Practices
  • (44:12) - Leveraging Technology for Record Keeping
  • (47:08) - Offering Bookkeeping Review Services
  • (53:06) - Building a Network of Preferred Partners
  • (55:52) - Pricing and Providing Additional Services
  • (01:02:37) - Conclusion: Adding Value Without Extra Work

    • Connect with Jeremy
    https://www.linkedin.com/in/jwellstax
    https://www.steadfastbookkeeping.com

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    This podcast is a production of Earmark Media

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    Tax in Action: Practical Strategies for Tax ProsBy Jeremy Wells, EA, CPA
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