What if you don't have receipts?

[jessegirl]

There's a lot of packing and shipping involved in my business and I usually pay teenagers in my neighborhood cash for helping out after school. Most of these kids don't have bank accounts so I give them cash and if I don't pay any one person more than $600, I don't have to give them a 1099 at year's end. I log this as a business expense, but I don't have any receipts for the bk!

Total amount going out to kids with no receipts for the past 6 months: about $3,000. Anyone see a problem with this?

Thank you,

Kathy

Do you have an attorney? If so you need to ask him. Not sure if this is a problem. I guess it could be if the trustee asks for receipts.

[kathy4530050]

There's a lot of packing and shipping involved in my business and I usually pay teenagers in my neighborhood cash for helping out after school. Most of these kids don't have bank accounts so I give them cash and if I don't pay any one person more than $600, I don't have to give them a 1099 at year's end. I log this as a business expense, but I don't have any receipts for the bk!

Total amount going out to kids with no receipts for the past 6 months: about $3,000. Anyone see a problem with this?

Thank you,

Kathy