The IRS doesn't require a receipt for everything. It requires you to prove your deductions. For most business expenses, that means documentary evidence such as receipts, canceled checks, or bills (IRS.gov).
This page puts the IRS rules in plain English. Every rule links to the exact line on IRS.gov where it's written, so you can check it yourself. No third-party summaries.
Last checked against IRS.gov: October 6, 2026. Updated monthly.
Quick answers
Do I need a receipt for every business expense?
Not always. For travel, gift, and car expenses, you don't need a receipt for an expense under $75, unless it's lodging (IRS Pub. 463). You still need a written record of the expense (IRS Pub. 463). For other business expenses, the IRS generally expects documentary evidence such as receipts, canceled checks, or bills (IRS.gov).
How long do I need to keep receipts?
Generally 3 years after you file. It's 6 or 7 years, or indefinitely, in specific cases, and at least 4 years for employment tax records (IRS.gov). Full table below.
Can receipts be scanned or kept digitally?
Yes. "All requirements that apply to hard copy books and records also apply to electronic records" (IRS.gov).
Does a bank or credit card statement count as a receipt?
It can prove you paid, but proof of payment by itself doesn't establish the deduction. Keep the sales slip or invoice too (IRS Pub. 583).
Can I estimate expenses I don't have records for?
No. The IRS says you can't deduct amounts that you approximate or estimate (IRS Pub. 463).
What every business expense record needs to show
For everyday business expenses, the IRS says your supporting documents should identify five things (IRS.gov):
| Element | In plain English |
|---|---|
| Payee | Who you paid |
| Amount paid | How much you paid |
| Proof of payment | Evidence the money actually left your account |
| Date incurred | When the expense happened |
| Description | What you bought, showing it was for the business |
One document rarely covers all five. The IRS notes that a combination of supporting documents may be needed (IRS.gov). Documents it lists for expenses: canceled checks or other proof of payment, cash register tapes, account statements, credit card receipts and statements, and invoices (IRS.gov).
The five elements for travel, gifts, and car expenses
Travel, gifts, and car expenses need more evidence (IRS.gov). Publication 463 lists five elements in Table 5-1, and you must be able to prove the ones that apply (IRS Pub. 463):
| Element | Travel | Gifts | Car and transportation |
|---|---|---|---|
| Amount | Cost of each separate expense for travel, lodging, and meals. Incidentals like taxis, fees, and tips can be totaled by category. | Cost of the gift | Cost of each expense. For a car: its cost and improvements, the date you started using it for business, miles for each business use, and total miles for the year. |
| Time | Dates you left and returned, and days spent on business | Date of the gift | Date of the expense, or of each use of the car |
| Place or description | Destination (city, town, or area) | Description of the gift | Your business destination |
| Business purpose | The business purpose, or the business benefit gained or expected | Not listed | Business purpose for the expense |
| Business relationship | N/A | Not listed | N/A |
Source: IRS Pub. 463, Table 5-1. Business relationship comes up when you need to prove who your guests were and how they connect to your business (IRS Pub. 463).
Two more rules apply. Write down the business purpose unless it's clear from the circumstances (IRS Pub. 463). Record expenses at or near the time they happen. A log you keep weekly counts as timely (IRS Pub. 463).
The $75 rule, explained
Publication 463 says you don't need documentary evidence, like a receipt, when (IRS Pub. 463):
- Your expense, other than lodging, is less than $75 (IRS Pub. 463)
- You have a transportation expense and a receipt isn't readily available (IRS Pub. 463)
- You're reimbursed for travel meals or lodging under an accountable plan using a per diem allowance (IRS Pub. 463)
What people miss:
- Lodging always needs a receipt. The IRS's sample expense report asks for receipted bills for all lodging, plus any other expense of $75 or more (IRS Pub. 463).
- The rule waives the receipt, not the record. You still need an account book, log, or similar record showing each element (IRS Pub. 463).
- It's a Publication 463 rule. Publication 463 covers travel, gift, and car expenses (IRS.gov). For other expenses, the general rule is documentary evidence (IRS.gov).
What a hotel or restaurant receipt must show
| Receipt | Must show |
|---|---|
| Hotel | Name and location of the hotel, the dates you stayed, and separate amounts for charges such as lodging, meals, and phone calls |
| Restaurant | Name and location of the restaurant, number of people served, and the date and amount. If you were charged for anything other than food and drinks, the receipt must show that. |
Source: IRS Pub. 463, Adequate evidence
IRS dollar amounts at a glance
| Amount | What the IRS says | Source |
|---|---|---|
| Under $75 | No receipt needed for a travel, gift, or transportation expense, except lodging. A record is still required. | Pub. 463 |
| Any amount | Lodging needs a receipted bill. | Pub. 463 |
| $25 | The most you can deduct for business gifts to any one person in a year. This is a deduction limit, not a receipt rule. | Pub. 463 |
| $250 or more | A charitable contribution needs a written acknowledgment from the charity. | IRS.gov |
How long do you need to keep receipts?
Keep records that support your income, deductions, or credits until the period of limitations for that return runs out (IRS.gov). Returns filed early count as filed on the due date (IRS.gov).
| Situation | Keep records for | Source |
|---|---|---|
| Standard case | 3 years from filing | IRS.gov |
| You file a claim for credit or refund after filing | 3 years from filing or 2 years after paying the tax, whichever is later | IRS.gov |
| You leave out income worth more than 25% of the gross income on your return | 6 years | IRS.gov |
| You claim a loss from worthless securities or a bad debt deduction | 7 years | IRS.gov |
| You don't file a return | Indefinitely | IRS.gov |
| You file a fraudulent return | Indefinitely | IRS.gov |
| Employment tax records | At least 4 years after the tax is due or paid, whichever is later | IRS.gov |
| Property and assets | Until the limitations period ends for the year you dispose of the property | IRS.gov |
| Car business-use records | For each year of the car's recovery period | IRS Pub. 463 |
Example: in the standard case, receipts for a 2025 return filed on time in April 2026 should be kept until at least April 2029.
Before you shred anything, check whether you need it for other reasons. Insurers or lenders may want records kept longer than the IRS does (IRS.gov).
Can receipts be scanned or kept digitally?
Yes. The same rules apply to paper and electronic records (IRS.gov), and a record prepared on a computer counts as an adequate record (IRS Pub. 463).
If you scan receipts or store them electronically, the system must (IRS Pub. 583):
- Index, store, preserve, retrieve, and reproduce records in legible format
- Provide a complete and accurate record of your data
- Be accessible to the IRS
- Follow the same controls and retention periods as paper records
Can you throw away the paper originals? Yes, as long as your system has been tested to confirm it reproduces records to IRS requirements, and you have procedures to keep it that way (IRS Pub. 583). The detailed requirements are in Revenue Procedure 97-22. The IRS may test your system, and that test isn't considered an examination (IRS Pub. 583).
What the IRS accepts as proof
Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks (IRS.gov).
Bank and credit card statements
If you don't have a canceled check, a highly legible statement from your bank or card issuer can prove payment if it shows (IRS Pub. 583):
| Paid by | The statement must show |
|---|---|
| Check | Check number, amount, payee's name, date posted |
| Electronic transfer | Amount transferred, payee's name, date posted |
| Credit card | Amount charged, payee's name, transaction date |
But a statement only proves you paid. The IRS says to also keep documents such as sales slips and invoices to show you incurred the cost (IRS Pub. 583). A canceled check with a bill from the payee ordinarily establishes the cost, but the check alone doesn't prove a business purpose (IRS Pub. 463).
Cash payments
Keep the receipt for cash payments. If you can't get one, write an adequate explanation in your records at the time you pay (IRS Pub. 583). Petty cash slips work for small cash payments (IRS Pub. 583).
What if you lost a receipt?
- Incomplete records: prove the missing element with your own written or oral statement with specific details, plus other supporting evidence (IRS Pub. 463).
- No receipt was available: other evidence can work if it's the best proof possible under the circumstances (IRS Pub. 463).
- Records destroyed by fire, flood, or another casualty: you can prove the deduction by reconstructing your records (IRS Pub. 463).
- Estimates don't count (IRS Pub. 463).
Missing a hotel receipt? A card statement shows the payment but not the separate lodging, meal, and phone charges the IRS describes for a hotel receipt (IRS Pub. 463). Ask the hotel to send a copy of your folio.
An IRS-defensible recordkeeping system
The IRS lets you use any recordkeeping system that clearly shows your income and expenses (IRS.gov). Whatever you use, these are the habits the IRS describes:
- Keep a separate business bank account. (IRS Pub. 583)
- Record expenses when they happen, not at tax time. (IRS Pub. 583)
- Write down the business purpose unless it's obvious from the circumstances. (IRS Pub. 463)
- Organize supporting documents by year and type of expense, and store them somewhere safe. (IRS.gov)
- Reconcile your bank account every month. (IRS Pub. 583)
- If you go digital, make sure the system can index, store, preserve, retrieve, and reproduce records in legible format. (IRS Pub. 583)
- Use software with controls against unauthorized changes or deletions. (IRS Pub. 583)
- Keep records available for IRS inspection at all times. (IRS.gov)
- Keep copies of your filed tax returns. (IRS.gov)
More questions
Do employees need to give me receipts to be reimbursed?
Under an accountable plan, employees adequately account by giving you a record made at or near the time of each expense, along with documentary evidence such as receipts (IRS Pub. 463). The IRS's sample expense report asks for receipted bills for all lodging and any other expense of $75 or more (IRS Pub. 463).
Do I need to rewrite what's already on the receipt?
No. You don't have to duplicate information shown on a receipt, as long as your records and receipts complement each other in an orderly manner (IRS Pub. 463).
Do I need a business-purpose note for every trip on a regular route?
No. If you drive an established route, the IRS says you can record the route length once, the date of each trip, and your total miles for the year (IRS Pub. 463).
Can I log small expenses as one entry?
Yes, for reasonable categories. You can make one daily entry for items like taxi fares, phone calls, or other incidental travel costs. Meals go in a separate category (IRS Pub. 463).
What records do I need for subscriptions and recurring charges?
The IRS expense guidance applies: the payee, amount paid, proof of payment, date incurred, and a description showing it was a business expense (IRS.gov).
Will the IRS ask for my accounting software file in an audit?
Often, yes. The IRS says examiners will request software backup files in the majority of cases where a business keeps its books in accounting software (IRS.gov). A recreated or re-entered file doesn't satisfy the request (IRS.gov).
IRS sources used on this page
Everything above comes from these IRS.gov pages:
- Burden of proof (IRS last reviewed 01-Oct-2026)
- What kind of records should I keep (IRS last reviewed 03-Aug-2026)
- How long should I keep records? (IRS last reviewed 30-Jun-2026)
- Why should I keep records? (IRS last reviewed 19-Aug-2026)
- Use of electronic accounting software records: FAQs (IRS last reviewed 03-Jul-2026)
- Charitable contributions: Written acknowledgments (IRS last reviewed 28-Jun-2026)
- Publication 463, Travel, Gift, and Car Expenses (IRS last reviewed 30-Apr-2026)
- Publication 583, Starting a Business and Keeping Records (IRS last reviewed 30-Apr-2026)
- Revenue Procedure 97-22, electronic storage systems (PDF)
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This page summarizes IRS guidance in plain English. It isn't tax advice. For your specific situation, talk to a tax professional.
Update log. October 6, 2026: every citation re-checked against IRS.gov. October 6, 2026: rewritten to cite IRS.gov only, with direct links to each rule.
