My small online business is getting audited what if I dont have anything but can get some of what they want?

And IF this really is fixing to take place then you already know that you may have a problem coming up from the above information that you have enclosed as a part of your question. And do you really think that some one at this website can actually tell you what the IRS auditor will really require you to furnish or make available to the auditor for the purpose of satisfying what the auditor will be satisfied with. Key words are good detailed records of all ordinary and necessary expenses of the business operation and a daily detailed mileage record or log of all business miles and all personal mileage that the vehicle is actually used for each purpose to help you determine your actual percentage of business use and in the event that you need the written records at some future time you would have them available to you. All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return. Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit. You would have to be sure that you handle your business deductions correctly for your business operation. For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples. Publication 463 Travel, Entertainment, Gift, and Car Expenses Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more. 2 of the seven tax tips for starting a business enclosed below. #4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. #7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material *Starting A Business *Operating A Business *Closing A Business *Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K) http://www.irs.gov/ http://access.wa.gov/business/taxes.aspx Hope that you find the above enclosed information useful for your situation and good luck to you.