Does The IRS Accept Receipt Scan for Tax Deductions?

Receipt scan

As the 2021 tax season comes to an end, the stress is starting to creep up on business owners. Preparations can be taxing on business owners, often involving numerous steps. This includes double-checking accounting records, going over their tax claims to make sure the final numbers are correct, and sorting through piles of receipts that they’ve hung onto to submit to the IRS. If you’re looking to streamline this process by digitizing your receipts, you may be wondering—does the IRS accept your receipt scans? can receipt scans legally support your tax write-offs the same as original paper receipts? 

We are here to put your mind at ease. 

The short answer to your worries is yes. Receipt scans are 100% legitimate and approved by the IRS. In fact, the IRS has accepted scanned and digitized receipts as valid tax records for tax purposes since 1997! As such, scanned receipts must meet certain requirements in order to be eligible. 

Read on to find out if your receipt scans have met all of the IRS’s requirements. 

What are the requirements for a receipt scan to be accepted by the IRS?  

According to the IRS, digital or scanned receipts must meet the following requirements:

  • Receipt scans are completely identical to their original versions.
  • Each receipt scan must exhibit a high degree of legibility and readability. 
  • You must be able to provide hard copies of the scanned receipts in the event of an IRS audit.
  • Scanned documents must be stored in a secure place.

If you can ensure your scanned receipts are properly stored and backed up, and you can reproduce hard copies from them in a legible, readable format, you may dispose of the original receipts. 

You might also be interested in: Understanding the IRS’s Tax Underpayment Penalty and How to Avoid It.

What is the most effective way to scan your receipts? 

If you’re looking for an easy and convenient way to scan your receipts, Shoeboxed is what you need. Since 2007, Shoeboxed has helped many accountants, freelancers, and businesses scan, digitize and store their receipts safely in the cloud. Simply scan your receipts with your phone with just a click, and perfect digital versions of your paper receipts will appear in your Shoeboxed app!

On top of that, Shoeboxed automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. 

In case you have too many receipts and too little time to deal with them, send your piles of documents using the Shoeboxed Magic Envelope, and the Shoeboxed team will take care of the rest. Just send and watch them transform into organized digital data.  

Quick, reliable, and trustworthy, Shoeboxed guarantees that the digital versions of your receipts are in precise format, audit-ready, and accepted by the IRS in the event of an audit.
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