I've been selling all kinds of used items (clothes, dirt bike, lawn mower, etc ) over the years and ran the sale of items through my husband's little fireworks business because people wanted to used their credit card. Anyway, I've always deducted what I sold from his firework sales so not to be taxed. Got a letter from the IRS stating we owed a lot of money because they went by what the bank sent out which unfortunately included my yard sale items (non taxable items). What do I need to do. I don't have any records, my husband just gives me cash for the items sold. I can guess on many items but I've been doing this for a while. We have changed the type of account it is and I'll no longer continue to do it. But how do I prove this to the IRS?
