According to the National Association of Tax Professionals, IRS auditors are now being instructed to obtain a copy of the taxpayer’s QB file for audits for any taxpayer that uses QuickBooks. If the taxpayer refuses to provide the database and the auditor deems it necessary, they can issue a Summons for the file!
There is definitely a trend that’s a direct result of so many small businesses using QuickBooks.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.