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What business expense evidence should I keep for the IRS?
Short answer
Keep records showing the amount, date, payee and business purpose, with invoices, receipts or other support where required. A bank or card statement alone may not prove what was purchased or why it was a business expense.
Detailed answer
Document the purpose at the time
Attach evidence to the transaction and explain the business connection, especially for travel, meals and mixed-use purchases. Some expense categories have particular substantiation rules. Separate personal costs and retain mileage or other contemporaneous logs where applicable. Do not assume that software categorisation proves deductibility.
Apply the relevant retention period
The IRS generally describes a three-year period in ordinary income-tax cases, with longer periods for specified circumstances. Employment and asset records can need different retention. Keep records longer where they support an ongoing asset, dispute or examination, and check the current IRS guidance before destroying them. Your adviser can help identify exceptions for your situation.
Official sources
Published by Expert Bookkeeping Services · Last updated 2026-11-01. General information only — confirm specifics for your situation with a qualified adviser.
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