We have had a horse farm with appropriate forms, sent with our tax returns
, since 1997.
This year they asked for "supporting information" to substantiate each item listed in our farm's expense form. We have all of that, either via receipts or proof of payment via checks and/or Paypal payments.
My question has to do with the fact that we have become careless in using only our farm checking account to pay for all farm expenses.
My husband wants to send in copies of the checks, which would be from the farm account and our personal account, but I only want to submit the "supporting information", such as the check number, date, whom paid and the amount paid.
I am concerned that sending copies of the checks, which would be "supporting documents" (not asked for), would provide proof of the use of personal funds to pay farm bills. BTW, the farm is not incorporated, just a simple Sole Proprietorship.
Should we send in just the check details for each payment, or send copies of each check, thus revealing that we haven't kept our farm and personal accounts separate?