The END of Receipts

[Corduroy Frog]

And yes, upon audit, IRS still wants them.

However, more and more reasons are surfacing as to why they shouldn't exist. Some of the mentality that comes with a "paperless" office. Use of credit cards. Third party payment arrangements.

"Back in the day" Accounts Payable personnel would be directed to assure receipts by simply refusing to pay a bill until a receipt was provided. No more. Companies now issue multiple credit cards to employees and they go from one end of the world to the other obligating the company. Accts Payable must now pay the credit card bill or suffer severe consequences - and they no longer can create compunction for the spenders to tender receipts.

Proponents of this mess say "We can manage the employees who spend the money." Sounds good, but if any of you have "hands on" experience with this, you know better. The only way you can manage spenders (especially big spenders) is to deduct money from their paycheck for missing documentation, and no company seems to want to "manage" their people this way when the rubber hits the road.

If you think receipts are available from payers such as Expedia.com or CheapTickets, forget it. The best they will do is allow you to download relevant information from their website, and in no way does this prove a traveler actually MADE a trip under an accountable plan.

With all this going on, how can sufficient documentation be attained in today's environment when the entire thrust of these new arrangements is to avoid it?

[Gary2]

I understand the bulk of the post, but don't understand the point about Expedia, etc. What makes a receipt from a travel agency better proof than a receipt downloaded and printed from an online service?

[Golden Rocket]

Here's the Problem

Expedia (or other services) are not really the vendor. This stuff is available for download when reservations are made, and the traveler can alter or even cancel the trip. Additionally, you might download a "package deal" involving a hotel, rental car, incidentals, etc. and the character of the expenses lose their identity.

As to what IRS would accept upon audit - I don't really know. There are those who claim to be on the cutting edge of technology who want to push us into the wonderful new world faster than some of us are willing to be pushed.

"Be not the first upon whom the new is tried, nor the last to put the old aside." Some smart guy said this and I don't even know who...

[Gary2]

Expedia (or other services) are not really the vendor. This stuff is available for download when reservations are made, and the traveler can alter or even cancel the trip. Additionally, you might download a "package deal" involving a hotel, rental car, incidentals, etc. and the character of the expenses lose their identity.

But how is that different from the way it's always been?

I don't know about Expedia, but when I buy tickets from Orbitz, it's always been subject to the same "no refund" policy set by the airline. But let's suppose I have something that is refundable. Whether I book it online, or do it the way I did 20 years ago with an agent, I still have an original receipt. Likewise, with any package deals, either they do have a breakdown or they don't - I can't say for sure, since I generally avoid package deals, but I haven't heard of any profound changes in the way they're reported. On the other hand, I have been to hotels and B&Bs that include breakfast, and don't remember ever seeing a breakdown of meal versus lodging.

For that matter, the same issue has always been there for brick and mortar stores. Stores have long been willing to issue store credit without a receipt. The only thing that's different now is that if you forget your receipt, many stores are willing to look up your purchase in their database and issue a cash or credit card refund instead of a store credit.

So it's always been possible to have receipts that don't tell the entire story.

[VT-EA]

Alexander Pope

In his Essay on Criticism, Alexander Pope issued this warning: "Be not the first by whom the new are tried, nor yet the last to lay the old aside."

[S T]

Receipts

What I like even better, that I have been a receipt keeper for years - and now going through some older files, I find that the receipt tapes are actually "blank"

You know that thermographic paper and whatever ink and it just simply disappears - So I have the receipt stapled to a credit card statement - Credit Card statement is still legible, but "voila" the receipt is blank.

Now it doesn't even take 12 months - my husband brings me receipts that he has had in his wallet for only a few weeks or sometimes just a few months - and they are not legible. Guess too much body heat in that Hip Pocket!

So much for receipts - not sure what IRS is going to ask of us or our clients 3 years from now.

If my computer or backup hard drives crash I just don't even know what I will do - as I have so much info stored there not only for personal and my business, but also clients.

I now have backup ontop of backup ontop of backup - so will now have to have offline backup somewhere else and hope they don't fail as well, and I can recover and restore

Life is really getting complicated isn't it!

Sandy

[Jiggers]

Receipts, receipts, receipts.........

In an audit, the taxpayer better have receipts from Sam's, Wal-Mart, Sear's, etc. The auditor will disallow all expenses to these places if the receipt is not present.

Been there, done that with an audit.

The auditor reviewed all such receipts looking for anything personal.

I have also had them review receipts from places like Tractor Supply, your local Feed Store, etc. Reviewing them for anything personal.

No receipt, no deduction. Checks/check copies/credit card statements just won't do.

Now an argument can be made if there are just a few of these receipts during the year, and the taxpayer can show that he has lots of other receipts to these places that were not deducted.

[Gary2]

The auditor reviewed all such receipts looking for anything personal.

I've seen similar comments from other professionals, but I'm left with a question: Will the auditor accept photocopies or scanned copies of receipts?