Protect Your Deductions - Digitize Your Receipts

When it comes to IRS audits, one of the most common reasons taxpayers lose deductions is the lack of proper documentation.

While your credit card or bank statements prove you spent money, they do not show what you purchased. Without supporting receipts or invoices, these records are considered unsupported - and during an audit, that is a problem.

To fully protect your deductions, especially for business-related expenses such as meals, travel, vehicle use, and gifts, you need to keep receipts that document five key facts: the date, the amount, the place, the business purpose, and the business relationship. The best way to do this is by capturing digital copies of your receipts.

Fortunately, it is now easier than ever. Using your phone, you can snap a photo of your receipt and store it securely using apps or other software. These tools often let you add notes, categorize expenses, and sync directly with popular accounting software.

Why go digital? Paper receipts fade or get lost. Digitizing them ensures that they are legible and accessible when needed, whether for year-end tax preparation or an unexpected audit.

Taking a few seconds now to scan or photograph each receipt can save you time, stress, and potential lost deductions later.

If you want to discuss more about this, please submit your information here and we will be in touch.

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To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Seek advice based on your particular circumstances from an independent advisor.