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

Update: 2025-10-15

Description

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.

Sponsors
SafeSend - taxshow.promo/safesend

(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

Subscribe on YouTube
https://www.youtube.com/@TaxinAction

Earn CPE for Listening to This Podcast
https://www.earmark.app/

This podcast is a production of Earmark Media