You *MUST* Have a Backup
Options for backup are as simple as purchasing a backup hard drive from a local electronic retailer or backing up to an offsite server (we provide offsite backup services as well as so many others online). Some hard drives you might purchase include software for backing up. This works, or, we have used Cobian in the past. We are currently testing new backup software, SyncBack. I’ll write more later on how to choose the best software.
If you’re going to store everything on your computer and throw away the original, you might ask, “Can I store receipts electronically for the IRS?”
Does the IRS accept digital receipts? Yes. According to ruling Rev. Proc. 97-22, the IRS allows one to prepare, record, transfer, index, store, preserve, retrieve, and reproduce books and records by either electronically imaging hard copy documents to an electronic storage media, or transferring computerized books and records to an electronic storage media that allows them to be viewed or reproduced without using the original program.
Can I throw away my receipts once I have captured an acceptable image? Yes. According to ruling Rev. Proc. 97-22, the IRS permits the destruction of the original hard copy books and records and the deletion of original computerized records after a taxpayer completes testing of the storage system.