Everyone needs to know what this means!If you have problems getting to sleep at night and you turn to the IRS tax code for help, you might find some vocabulary that is very foreign to you. One of the more uncommon words used by the IRS is the term "contemporaneous." So what does it mean and why should you care?
Contemporaneous defined According to the IRS, it means that the records used to support a claim on your tax return are created and originated at the same time as your claimed deduction. In other words, if you realize that you forgot to get a receipt for something, you are out of luck if you try to get one at a later date. Not fair! Perhaps you know you had the expense, but you simply forgot to get a receipt. You can cry foul, but time and time again the tax courts have upheld the IRS's elimination of a taxpayer's deduction for lack of contemporaneous documentation. Here are some areas where the term contemporaneous is especially important:
What you need to know
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September 2023
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