You can not cheat the IRS. As long as your 100% honest, and have supporting documentation you'll be fine. And yeah, the inconsistencies is what will get you an audit. Yardguy, don't know your story, how long you've been in business, but your last few lines in post #38 kind of scare me. You DO need to know these things. You do need to question your accountant. Just like all LCO's aren't created equal, accountants aren't either!