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Left holding the bag

| A Day in the Life of a Scrapper

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    that's great but there are many industries that are simply cash based, and the irs/government takes this into account. This holds true for not only scrap buyers but flea market/ebay/swap vendors who make cash purchases for resale. Keeping records for 1,000 $5 purchases is a bit much to expect.

    Like others said, keep accurate records, mileage, bank statements, your ledger, etc, and you'll be fine. How you run your business is also important - there are a lot of red flags that the irs looks for, like business losses that are ridiculously large, really high costs of goods sold, high deductions for mileage, etc that signal you're gaming the system.

    If you're expenses are "reasonable and ordinary" as they say, you'll be fine.


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