Attachments and records to keep

An attachment is a document that supports a transaction: a receipt, a bill, an invoice, a contract, or a deposit slip. The IRS calls these supporting documents.

What to keep

The IRS lists these examples:

• Income: deposit information, receipt books, invoices, and Forms 1099 such as 1099-NEC, 1099-MISC and 1099-K.
• Purchases and expenses: receipts, invoices, credit card receipts and statements, account statements, and proof of payment such as canceled checks or records of electronic transfers.
• Assets: purchase and sales invoices, closing statements, and proof of payment.

Proof of payment alone does not show that an expense is a business expense. A receipt or an invoice shows what you bought.

Electronic copies

The IRS applies the same requirements to electronic records as to paper records. If you want to throw away paper originals, read the electronic storage rules in IRS Publication 583 first.

How long to keep records

Keep records while they can matter for a tax return. For many returns, that is 3 years. It can be longer: for example 6 years if income that you did not report is more than 25% of the gross income on the return, 7 years for a claim for a bad debt or worthless securities, and at least 4 years for employment tax records. Read the full list on the IRS page below.

In Righto

Attach files to any transaction, bill, or receivable. They stay inside your encrypted business file, and the year-end package can include them. A missing receipt does not stop you from marking a transaction Done. See Categorize, match, and mark Done and Year-end package and full export.