Strippers or anyone Self-Employed: keeping receipts
How long do you typically hold onto your receipts, and other proofs of income? I haven't danced in some years besides one short return. I have boxes and boxes of receipts that are taking up my storage space.
They are kept in plastic bins but its still a fire hazard. No way am I going to take the time to scan them. I want to toss them. But I'm told the IRS could potentially audit anytime. Is there a statute of limitations on audit? I have tax records, Excel spreadsheets, 1099's, etc. I just want to get rid of receipts.
Ideas? This isn't a stripper only question. Some of the paperwork I still keep it also related to a non-adult business I had.
Thanks!
Re: Strippers or anyone Self-Employed: keeping receipts
Maybe you could send them to a document storage company. Here's one:
http://www.bluemountainstorage.com/d...l_storage.html
Re: Strippers or anyone Self-Employed: keeping receipts
I believe 7 yrs is required. I keep mine for 8. Its a good idea to have digital copies, but remember that you are liable to provide the IRS copies if they ever ask, so if you go the digital route you should put copies in two different places incase something happens to one copy.
Re: Strippers or anyone Self-Employed: keeping receipts
from a squeaky clean legal standpoint 7 years worth of receipts need to be kept. From a real world standpoint, the IRS seldom audits farther back than 3 years.
Re: Strippers or anyone Self-Employed: keeping receipts
Quote:
Originally Posted by
eagle2
Thanks for the idea! Its a bit much though. I have boxes of disorganized receipts. I recorded expenses as they came in on my spreadsheets and just dumped the paperwork. If there was an issue, I could literally take a weekend day to sort them all out to confirm my deductions. Otherwise, I just want the extra storage space back ;)
Re: Strippers or anyone Self-Employed: keeping receipts
Ive been keeping mine in a 12 pocket expanding file. But I notice after awhile the ink starts to rub off even if im not messing with them. Maybe I should get a digital receipt scanner?
Re: Strippers or anyone Self-Employed: keeping receipts
digital receipt scanners are very handy if you have enough receipts to justify them. Also, due to lack of historical precedent, it really isn't a certainty that the IRS / courts will unconditionally accept digital 'copies' of receipts ... especially for 'important' high ticket items.