An article in Barron's supports, in a big way, the importance of keeping good business records. The article details how the IRS disputed a $75,000 repayment of a loan for a business owner named Henry resulting instead in a $68,000 dividend, on which Henry owed tax.
This is also true for employers. In most cases [I'd say all, but there's always an exception; 99.44% perhaps] keeping adequate records of payroll, employee time and records, behavior of employees, etc., is essential. Without records, why should a judge or jury believe the employer over an employee? After all, it's the employer who is expected to have the motive and ability to handle record-keeping.
