Do you have to keep paper receipts for taxes?
Table of Contents
Read this article if you’re a small business, self employed, or freelancer and want to know, do you have to keep paper receipts for taxes?
Do you have boxes full of paper receipts?
Small business owners, self-employed, freelancers, independent contractors, or any taxpayer has at one point wondered if they need to hang on to their paper receipts.
Most of you have probably asked yourself, do you need original receipts for tax purposes?
If you’ve asked yourself this question then you definitely want to keep reading this article.
Do you have to keep paper receipts for taxes?
The IRS doesn’t mention anything about keeping paper receipts except in one case. See more details on that below. In fact, the IRS says, “Electronic information management has become the standard in the private sector… instead of continuing to use traditional paper books”.
Related: The Complete List of Small Business and Self Employment Tax Write Offs
What does the IRS require you to keep?
The IRS requires you to keep the following records:
- Merchant
- Date
- Amount
Basically, what you bought, when you bought it, and for how much. There is no mention of paper receipts at all. So go right ahead and keep a digital record of your business expense purchases for taxes. Check out this article for a complete list of IRS expense record-keeping requirements for all expense types,
When do you have to keep paper receipts for taxes?
For purchases over $75, you need to keep paper receipts. So if you take a client out to an expensive meal, and it cost over $75 then you need to keep a paper receipt. For all other purchases, as long as they’re considered ‘reasonable and ordinary’ expenses, you don’t need a receipt.
What to do if you get audited?
The IRS is legally required to accept digital proof of purchases for tax write-offs. So don’t worry. In addition, digital forms of proof of purchase include bank statements and credit card statements.
Conclusion
Stop hoarding paper receipts. Instead, use a reliable receipt keeper app like Falcon Expenses.
Download Falcon Expenses on the app store, it’s free.
With Falcon Expenses snap pictures of receipts and safely store them for when you need them. Categorize, tag, and organize receipts into reports. Export receipts and reports whenever you need them via email, all from your phone. Receipt images, along with the IRS required data are nearly organized into reports for your boss, accountant, or personal records. Your receipt images are organized in Falcon Expenses IRS compliant expense report template export. Export expense reports in PDF or spreadsheet formats.
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I used to travel a lot for work. Doing my expenses frustrated me. I would delay submitting them and when I did, I would spend hours taping receipts to paper to scan for my boss. I knew there was a better solution, and I had a background in productivity software, so I created Falcon Expenses. I enjoy creating software that makes people’s lives easier.
In addition, I’m an avid skier and I enjoy hiking, sailing, and cooking.
