Should you keep receipts for tax purposes? The quick answer… YES!
The IRS says to keep receipts (and tax returns) for 3 years. Most IRS audits take place 18-24 months after filing.
Bank statements and credit card statements are NOT enough proof – but receipts are! (Auditors have the final decision, but it’s best to save receipts!)
Best practices for safe storage of receipts: Choose what’s easiest for you (the good ‘ol shoebox, filing cabinet, digital scans or photos, etc.). Label with the year – add “toss date” for easy reference on when the receipts can be disposed of after 3 years!