12 more months of documentation is required. Receipts, invoices, inventory, payroll, the list is endless. And they need hard documentation for EVERYTHING as is the case with any audit.
Which is why your tax preparer will remind you to keep all of your receipts for everything you buy with your HSA, should you have one, as you'll need them if you're ever audited. Do you do that? Most don't. And if you should be audited you'll be spending weeks trying to source them, if that's even possible. And you start to understand the challenge with audits.
You think the auditors are all on a Hawaiian beach taking 6 months of vacation while Snakes yells and screams. As opposed to the auditors asking for documentation and Snakes having to slave for weeks trying to source it all. Rinse, then repeat as they peel back more layers of the onion.
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