How Long Should You Keep Receipts for the IRS?
The IRS record retention periods — 3, 4, 6 and 7 years and indefinitely — when each applies, and the $75 receipt rule for travel expenses.
By OneSoftWay 3 min read
The IRS does not give one number for how long to keep receipts. It depends on your situation — and on the period in which the IRS can still assess tax or you can still claim a refund. Here are the periods the IRS lists, and a simple way to keep up with them.
This article summarizes IRS guidance for general information. It is not tax advice — check the IRS pages linked below, or ask a tax professional, for your situation.
The IRS retention periods
From the IRS page How long should I keep records?:
| Situation | Keep records for |
|---|---|
| None of the cases below apply | 3 years |
| You did not report income you should have, and it is more than 25% of the gross income on your return | 6 years |
| You claim a loss from worthless securities or a bad debt deduction | 7 years |
| You do not file a return, or you file a fraudulent return | Indefinitely |
| Employment tax records | At least 4 years after the tax is due or paid, whichever is later |
For property — equipment, a vehicle, a building — keep the records until the period of limitations expires for the year in which you dispose of the property. You need them to work out depreciation and the gain or loss when you sell.
The IRS also reminds you to check whether anyone else — an insurer or a creditor, for example — needs you to keep records longer.
The $75 rule for travel, gift and car expenses
IRS Publication 463 covers travel, gift and car expenses. It says you must have documentary evidence, such as receipts, paid bills or canceled checks, for lodging and for any expense of $75 or more. Your records also need to show the amount, the date, the place and the business purpose.
That is why a hotel folio or a client dinner receipt is worth scanning on the spot, rather than hoping it survives the trip home.
Keeping receipts without the shoebox
- Scan when you pay. Receipts printed on thermal paper fade; a clear image taken today stays readable.
- Write down the business purpose. The receipt shows the amount, date and place — add a note saying who you met or why you bought it.
- Separate business from personal. Filing business receipts as you go saves sorting them at tax time.
- Keep them findable by year. When a year’s retention period is up, you should be able to see exactly which receipts belong to it.
With SpendFlow, the receipt image is saved the moment you scan it, AI reads the merchant, date, totals and tax, and you can add notes, file it under a company and group, and find it later by date range, merchant or amount.
For the electronic storage of records, the IRS has published requirements in Revenue Procedure 97-22 — ask your tax professional whether your setup meets them before discarding paper originals.
Frequently asked questions
How long should I keep receipts for the IRS? +
Generally three years. The IRS lists longer periods for specific cases — six years if you underreport income by more than 25% of the gross income shown on your return, seven years for a loss from worthless securities or a bad debt deduction, and indefinitely if you do not file or file a fraudulent return.
How long must employment tax records be kept? +
At least four years after the date the tax becomes due or is paid, whichever is later.
When does the IRS require a receipt for a travel expense? +
IRS Publication 463 says you must have documentary evidence, such as receipts, for lodging and for any other expense of $75 or more.