Receipts Required for the IRS
- Receipts do not need to be sent in with tax returnstax forms image by Chad McDermott from Fotolia.com
The receipts required by the Internal Revenue Service (IRS) do not need to be filed with a tax return, but do need to be retained in case of an IRS audit. Most people believe a receipt for any deductible expense over $25 must be retained, but in fact the IRS revised this requirement in 1995 and increased the receipt requirement to any expense of $75 or more. However, it is a good idea to keep a copy of every deductible expense, no matter how great or small it is. - Travel expenses that pertain to a business or employee are deductible. These expenses include such items as gasoline burned by your car or by your employee's car while being used to conduct business, lodging and meals purchased during out-of-town business travel.
- Oftentimes, a business or sales person may be called upon to entertain clients in order to win their business. This is a legally deductible expense and includes a surprisingly wide range of items. For example, any event, meal or activity used to entertain a prospective client is considered by the IRS to be an authorized deduction. This may include ball game tickets, movie tickets, dining out, lodging or drinks provided during the course of negotiation. Again, always keep your receipts.
- Receipts for charitable contributions of $250 or must be retained by a person who utilizes this deduction. A receipt from the organization, a cancelled check or credit card statement will be sufficient proof of this donation and can be used as a receipt. If the donation is goods or services, the donor must have a written statement from the charitable organization if the goods or service exceed $75 in value.
