heyhun77 05:03 AM 02-10-2011
For those of you who copy receipts to have a moer permanent copy for your records do you keep the originals as well? This is one thing I'm struggling to let go in the trash because I feel like I may need the original at some point but after doing the final pack up of my 2010 tax file to put in the cabinet I'm realizing that receipts are the only thing I can probably take out of there in order for it all to fit.
Do we NEED the originals in an audit or will the IRS consider copies to be the same?
Michelle
Little People 05:07 AM 02-10-2011
I copy mine and then staple the originals to the back.
dEHmom 05:22 AM 02-10-2011
Usually after a year or so the receipts fade completely, so that's why we make the copies. Since every business switched to the laser ink or whatever receipts, they fade so fast, especially if you don't store them in the proper place.
TomCopeland 03:20 PM 02-10-2011
I would advise you to save your paper receipts even after scanning them into your computer. There may come a day when it's common practice for everyone to have everything on computer, but we are not there yet, and I would be nervous advising you to throw away something that may be needed later.
Join me for a webinar February 28 - "How to Reduce Your Taxes for 2010 and 2011". For more info:
https://www.daycare.com/news/taxes/t...d-webinar.html
heyhun77 03:30 PM 02-10-2011
Originally Posted by TomCopeland:
I would advise you to save your paper receipts even after scanning them into your computer. There may come a day when it's common practice for everyone to have everything on computer, but we are not there yet, and I would be nervous advising you to throw away something that may be needed later.
What about just straight copies? I'm thinking that it would take up less space to just throw them on a copy machine at the end of each month but I didn't know if I would need to keep the receipts that end up pretty much useless by the end of the year due to the stupid thermal paper.
TomCopeland 03:43 PM 02-12-2011
If you are making copies of your receipts (good idea if the receipts fade) then I still recommend saving copies of the originals.
Join me for a webinar on February "How to Reduce Your Taxes for 2010 and 2011" For more info:
https://www.daycare.com/news/taxes/t...d-webinar.html
Abigail 10:51 PM 02-12-2011
Receipts only need to be held for three years right? That is how far back the IRS can audit. So is it safe to toss out any up until 2008-2010?
TomCopeland 08:12 AM 02-13-2011
You should save your receipts for three years after filing your taxes. You may want to save them for four years, just to be sure you don't make a mistake on the date. The IRS can only audit you back three years - so after April 18, 2011 they can't audit you for 2007 or earlier.
There is one exception to saving receipts for 3 years. If you are depreciating an item (furniture, swing set, fence, etc.) you should save the receipt for the life of the depreciation, plus three years. So, since furniture and appliances are depreciated over 7 years, save these receipts for 10 years.
There are three exceptions to the rule that the IRS can't audit you back further than 3 years: you didn't file a tax return, you cheated on your tax return, you underreported your income by more than 25%.