Are receipts needed?

[WITAXLADY]

so with these scan in and "neat desks" programs, after the taxpayer scans all his receipts in - does he still need to keep his original receipts or because they print out like they looked, now can the originals be thrown out for paperless bookkeeping and still satisfy an IRS/state audit?

Thx

[Pacun]

No. Keep the original receipts.

I remember a court case when someone won and then he showed a bunch of tickets to prove of his loses. The court examined the tickets carefully and noticed some shoe prints on the tickets, the court assumed that the tax payer cleaned the arena after all disappointed gamblers throw away their tickets.

With the software packages out there, it will be easy for someone to change the last digit of the year and make 2013 look like 2014. Also they can change the amounts.

[Mr. Pencil]

can the originals be thrown out for paperless bookkeeping and still satisfy an IRS/state audit?

The only answer I know for questions like that is that better records are, well... better. You don't want to go to audit without some alternative techniques. You might draw an old-fashioned pencil-pusher you want to impress with original docs. Or you might get some impatient kid that you want to overwhelm with little scraps of paper.

Admittedly times are changing, but I would say the all-paperless office is still not standard business procedure. Suppose you had a contract dispute or needed warranty service or wanted to return something to a store--wouldn't an original be best? Or getting reimbursements from your boss or insurance company?

[michaelmars]

I keep receipts for the 3 open years on paper, older than that I only keep the scans. Of course as MP pointed out, there are exceptions to every rule.