As the time for filing taxes draws closer, a small bit of fear comes into the mind of small business owners.
Preparations for taxes may be laborious since it includes many stages. This involves rechecking the accounting records, reviewing the tax claims to ensure that the final figures are accurate, and sifting through the mounds of receipts they have been saving to hand over to the Internal Revenue Service (IRS).
If you are hoping to simplify this procedure by scanning your receipts, you may be wondering whether or not the Internal Revenue Service would accept your scanned receipts. Do scans of receipts have the same legal weight as the original paper versions when it comes to supporting tax write-offs?
The short answer to your concerns is, yes — the IRS has given its blessing to the use of scanned receipts. Since 1997, the Internal Revenue Service has recognized scanned and digital receipts as equivalent to paper receipts in terms of their status as legitimate tax records. The rule that allows digitally scanned receipts is called Revenue Proclamation 97-22.
However, to be valid, scanned receipts must fulfill several standards.
The Internal Revenue Service mandates that the following criteria be met by any digitized or scanned receipts to be considered valid:
You are allowed to get rid of the original receipts if you can guarantee that your scanned receipts are properly preserved and backed up and if you can make hard copies from them in a manner that is legible and readable.
If you get audited, the IRS is legally required to accept electronically scanned forms of proof for your write-offs, including bank and credit card statements.
Balance Prois the perfect solution for you if you seek a quick and uncomplicated method to scan your receipts. With Balance Pro, your can snap a photo or scan a receipt and upload it right into the app for safe keeping.
This post is for informational uses only and is not legal, business, or tax advice. Please consult with an attorney, business advisor, or accountant with concepts and ideas referenced in this post. Balance Pro assumes no liability for actions taken in reliance upon the information contained in this article.
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