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b. Business records such as ledger sheets, receipts files, accounting records, including those maintained regularly by the a/b or financially responsible person on paper or in software programs such as Quicken.

c. Information obtained from contact with suppliers, landlords, banks or purchasers of goods or services provided.

d. Signed allegation if no other evidence can be obtained and the a/b has not been informed of the requirement to keep business records. Give the a/b theDHB-5043, Verification Form for Self- Employment Income and Expenses, and explain to a/b how to use the form. At the next application or review the a/b will be required to provide self-employment/operational expense records in order for eligibility to be established.

7. Withdrawals for Personal Use

Be sure to ask about any cash or in-kind items the self-employed a/b or financially responsible person may have withdrawn from their business for personal use. These must not be allowed as part of the operational expenses.

When an a/b alleges (or you discover) that cash or in-kind items (e.g., food, fuel) are withdrawn from a business for personal use:

a. Ask if the withdrawals were properly accounted for. Were they deducted on tax returns or on business records in determining cost of goods sold? Accept a/b’s allegation that the cost of goods sold were deducted on his business records. If they were deducted, then they were properly accounted for.

b. If they were not deducted, ask the a/b to estimate the value. Deduct this amount from operational expenses. 8. Disagreements

If records disagree, attempt to resolve the difference. If unable to resolve, use records which verify the lower income amount.

9. Calculating Adjusted Gross Self-Employment Income

a. If the a/b states there has been no change in the business earnings in the past year, budget projected income from the base period.

(1) If using the prior year federal tax return document or most recent year’s quarterly tax statements, divide the total earnings from self- employment equally among the months in the tax period to