IRS agents are now asking for a copy of the taxpayer’s QuickBooks data base. The IRS has purchased 1,500 to 2,000 licenses from Intuit and will begin training agents to use QuickBooks in their examinations of taxpayers. It will be done only on those examinations that the agent deems necessary and if the taxpayer refuses a summons for the information will be issued. The agents are only to look at the information for the year under audit.
Yikes what a scary thought; an IRS agent with a copy of your QuickBooks file!
Normally I cringe at QuickBooks and their annual updating of the software causing me to shell out more money for the same software with a few minor tweaks. But this year I am hoping they come up with some way to lock an IRS agent out from prior year information. Perhaps it could be a read only copy of a particular year, locking the agent out of viewing prior year activity and not allowing ANY changes to be made to the data base. You can bet this will be an interesting tidbit to watch!