But Mr. IRS-man, this was a real business expense!”

And it may honestly have been! You recorded that business lunch or that Staples purchase or those travel tolls in your QuickBooks…good for you! And you got your tax return done, and your Accountant agreed those were legitimate expenses, and you went merrily on your way. So what’s the problem?

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Absolutely nothing….unless you get audited. Then, in order for those expenses to be allowable, you have to PROVE you spent the money on what you said. This is why you save receipts. Sure, the charge was on your bank statement or your credit card, but only on the receipt can you actually prove what you spent the money on. This is why you save receipts.

Ah, but you ask, for how long must I save said receipts? That’s not a short answer, but in general 3-6 years. Try this out: IRS guidlines

Glad I could help!