Tax Issue.......Fading receipts.

[R W]

Anybody run into this problem with receipts of goods purchased during the year for your business? I just got my taxes finished (I got an extension, which was 6 months), and found a lot of receipts for parts and stuff I purchased during the 2006 year were fading to almost invisible. Fortunately, the gas receipts were still legible. But the little store receipts that you get when picking up parts at the local hardware store (washers, fittings,etc...)were fading or disappeared.

Oh....the extension wasn't a problem cause I didn't owe more tax than I paid in. But I will get them in early next year....

 

[Gary T]

Receipt scanner and or a ziploc bag.

 

[Ricky Thurman]

keep them in a cool, dark place. and they should last at least a year

 

[Kevin B]

a year is not good enough.

 

[Shorty]

Plastic will very quickly render them invisible.

Keep them in paper/cardboard folders.

Record all on your pc, including date, amount, number and any other relevant details.

Correlate each one with your bank statement each month.

Have a back-up file/external hard drive JUST in case your pc craps itself as mine did recently when the spindle in my hard drive went out of whack as the pc doctor was unable to save anything.

I do the above NOW.

I also keep my Quicken details on two USB flash drives, alternating, as well as the external back-up hard drive.

Entering these details daily makes it all so much easier at the end of the year (tax time).

 

[B&BGaryC]

Those dang receipts are evil! I always keep them in my wallet. They last about 2 weeks that way!

 

[GRHeacock]

One company I do business with, their receipts are printed very lightly every time, like they were trying to save on ink.

Anyway, now, each time I get one, I write in ball point pen the store name, the amount and what it is for on the face of the receipt in order to be legible at a later time.

Gary

 

[J Scott W]

Enter the information into your bookkeeping system. The information is more important than the actual receipts.

IRS will not debate that you spent a few dollars buying washers and fittings. They will be concerned if you have spent thousands but have not kept up to date records. Record keeping should be "contemporary" according to IRS.

Any large purchases should be done by check, credit card, business account or some form where there is a more durable record than a cash receipt.

Scott Warrington

 

[Desk Jockey]

You could always copy the thermal ones, or scan them.

Last time we were audited she said if I could come up with half of the cash receipts she would give me credit for all.

Not to say you shouldn't keep good records but it's doubtful it will be a major point, provided you have most of them.

 

[The Great Oz]

Thermal print will fade and/or be blackened by any exposure to heat. This is the cheapest, oldest instant copy technology, something not seen by those not old enough to remember the first fax machines.

Photocopy them and attach the original to the photocopy.

Anything not thermal printed should be OK.

 

[R W]

Probably all printed with Chinese ink.....