What the IRS actually asks for — and what Reconcily hands you

Examiners work line by line: for each questioned deduction they want documentary evidence — an invoice or receipt — plus proof of payment.

Every transaction in the workbook traces to its source document (vendor, date, amount, reference IDs) — and every document links back to the bank or card charge that paid it. Two-sided substantiation, per line.

Totals that don't tie to the statements invite deeper scrutiny — the examiner's first credibility check.

The bank tie-out sheet proves it per account: opening balance + every transaction = closing balance, checked against the statement and labeled reconciles / does not reconcile. Books that tie out to the cent.

Undocumented deductions are where audits get expensive — unexplained gaps read as either sloppiness or concealment.

Nothing is hidden or guessed: every unmatched item is explicitly flagged with a reason and its dollar exposure, qualifying small expenses carry the under-$75 documentary-evidence exception (travel, meals, auto — never lodging; the receipt is excused, the record of time, place, and business purpose is not), and statement-documented charges — bank fees, interest, plan fees — are marked as such.

An examiner has seen plenty of tidy-looking spreadsheets that fall apart under questions.

The summary sheet carries a computed verdict — “Audit readiness: READY” — stating the documented percentage and listing every remaining blocker. It's calculated from the books, not asserted by a person.