Are Scanned Receipts Valid for the IRS and CRA? What to Check

Short answer: often yes, but with conditions. The IRS says an electronic record-keeping system has to give you a complete and accurate copy of your records that the IRS can access. The CRA says paper documents imaged according to the national imaging standard may be thrown out and the images kept as your permanent records. In both cases, the scan has to be good enough, easy to find, and kept for the full required period.

This guide walks through the points where people usually get stuck, in order, and what to do at each one. It's general information, not legal or tax advice. If your situation is complicated, ask a tax professional.

Problem 1: "Is a scan even allowed instead of the paper?"

This is the question everyone starts with, and the answer differs a little by country.

United States. IRS Publication 583 says an electronic storage system must be able to "index, store, preserve, retrieve, and reproduce" your records in a legible format. It also says you can only discard the paper originals after the system has been tested to show the hard copies are being reproduced in compliance with IRS requirements. For the detailed rules, Pub 583 points to Rev. Proc. 97-22, published in Internal Revenue Bulletin 1997-13. It says records kept in an electronic storage system that meets its requirements "will constitute records" for tax purposes, the same as paper.

One caution: the procedure applies to any taxpayer who keeps tax records, but it is written for a formal "electronic storage system" with controls, testing, and written procedures. A freelancer can meet it, but nobody does by accident. So treat it as the standard to aim for, not a box an app ticks for you. Don't assume a pile of photos meets it.

Canada. The CRA's guidance on electronic record keeping says paper source documents that have been imaged according to the latest national imaging standard "may be disposed of and their images kept as permanent records". That standard is a formal one, so a quick phone snapshot may not meet it. The same page expects those electronic records to be usable by a CRA auditor, in a "non-proprietary, commonly used data interchange format".

What this means for you: a scan is not automatically invalid. What matters is how you scan, store, and retrieve it.

Problem 2: "What does a scan need to look like?"

Section 4 of Rev. Proc. 97-22 sets out what the system has to do. In plain terms, treat these as a checklist for your own setup:

1. Accurate, complete transfer. The scan should capture the whole receipt, not a cropped corner. The procedure also says you should keep the paper for any receipt that can't be transferred accurately or completely, such as one that is already illegible.
2. An index. You should be able to find a record again. The procedure says this is satisfied by something "functionally comparable to a reasonable hardcopy filing system", so sorting by date, vendor, and category counts.
3. Legible reproduction. You can produce a readable copy, on screen and on paper, when asked. The procedure defines legible as being able to identify every letter and number "positively and quickly".
4. Checks on your process. Regular evaluations, including periodic checks of the stored records.
5. Controls. Reasonable safeguards against records being added, changed, deleted, or deteriorating without authorization.
6. Retention for as long as the records may matter for your taxes (see the table below).

The procedure also asks you to keep a description of your system and how you use it, and to hand it over if the IRS asks. It lists creating back-up copies and an off-site storage location as recommended practices. And if you use a third-party service to store records, that "does not relieve the taxpayer" of these responsibilities. The same goes for an app.

Here's how to apply that on an iPhone, step by step:

• Capture the whole receipt, flat, in good light. If you can't read it on the screen, an auditor won't be able to read it later either.
• Capture it soon, before it gets lost or worn.
• Make sure vendor, date, and total are recorded for every receipt. That's your index.
• Don't edit the image. Keep what you captured.

ReceiptZero auto-extracts the vendor, date, and amount from each receipt. Its text recognition runs on your iPhone using Apple's Vision framework. That's a convenience feature. We can't say it makes your setup meet the items above, and no app can do the testing and documentation parts for you.

Problem 3: "How long do I have to keep these?"

This is the other half of validity. A perfect scan is no use if you delete it too soon. Here is what the IRS says on its "How long should I keep records?" page (checked October 19, 2026):

Situation	Keep records for
Default	3 years
You didn't report income that was 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
Employment tax records	At least 4 years after the tax is due or paid, whichever is later
You didn't file a return, or filed a fraudulent one	Indefinitely

Property records are different. Keep them until the limitations period ends for the year you dispose of the property. The IRS also suggests checking whether you need the records for other reasons, like insurance or a loan, before you toss them.

For Canada, the CRA says to keep business records for at least six years from the end of the latest year they relate to.

Why ReceiptZero shows "7 years" for the US: the app calculates its US retention date as the end of the tax year plus 7 years, and the code treats that as a conservative choice. The PDF report footer says "Recommended retention: 7 years (IRS)" for US users and "Retain for 6 years (CRA)" for Canadian users. Those are the app's reminders. They're not a substitute for checking the table above for your own situation.

Problem 4: "Which receipts do I actually need to keep as proof?"

Not every purchase gets the same scrutiny. IRS Publication 463 says that for certain travel and similar expenses, receipts or similar documentation are needed when an expense is $75 or more. The documentation should show the amount, date, place, and nature of the expense. We haven't verified how far that rule extends, so check Pub 463 for the details that apply to you.

Whatever you claim, the practical habit is the same: for anything you plan to deduct, scan the receipt on the day you get it, and make sure the vendor, date, and total are right.

Problem 5: "How do I hand this to my accountant (or an auditor)?"

A folder of photos isn't an organized record. A report is. Pub 583 lists receipts, paid bills, invoices, and similar documents as the supporting records to keep, and suggests organizing them by year and type of expense.

ReceiptZero's exports are designed for this:

• PDF report: a cover page (period, total spending, tax summary, currency/jurisdiction), a ledger table (Date, Vendor, Category, Subtotal, Tax, Total), the receipt images, and a footer with a retention note for your jurisdiction.
• CSV: columns for Date, Vendor, Category, Currency, Subtotal, GST, HST, PST, QST, SalesTax, Tip, Total, PaymentMethod, ReceiptNumber, and Notes. Deleted and archived receipts are left out.

What the free version does and doesn't give you. Exporting works on the free version, but the free PDF carries a "ReceiptZero · Free Preview" watermark on every page, and the free CSV stops at the first 10 receipts. If you have more than that, a last line notes how many of your total receipts were included. ReceiptZero Pro removes both limits. Pro is an annual subscription or a one-time lifetime purchase. So if you want a clean PDF or a complete CSV to hand over, plan on Pro. We wouldn't call a watermarked preview something to send to an auditor.

On privacy: the app is designed to keep your receipts off our servers. Text recognition runs on the phone, and backup goes to your own iCloud. There is an iCloud Backup setting that's on by default. When it's on and available, receipts sync to your own private iCloud, and you can turn it off in Settings. ReceiptZero on iPhone has no ads.

Get ReceiptZero on the App Store (iOS 17.0 or later).

Problem 6: "What should I NOT assume?"

A few honest limits:

• ReceiptZero doesn't certify that it meets IRS or CRA requirements. The app aims to produce clean ledger-style reports, but there's no verification or certification behind that. It has a searchable structure and export formats. We couldn't verify a documented testing procedure, access-control documentation, or protection against image editing in the app. You're still responsible for your own records. That's true even when you use a third-party service, which is something the CRA says explicitly.
• Backups need your attention. The CRA expects a restore process and periodic testing of backed-up records. The app has an iCloud toggle, but we haven't confirmed a restore test or which country iCloud keeps the copy in, so don't treat it as your only copy. Rev. Proc. 97-22 lists back-up copies and an off-site location as recommended practices for the same reason.
• A phone photo isn't guaranteed to be accepted. We didn't find IRS wording that explicitly addresses phone-camera receipts, only scanned or imaged records. Keep the paper if you're unsure, or if the receipt matters for a large deduction.
• Keep the paper if you're not ready to meet the conditions. Throwing out the original is the step with consequences. Discarding is the part to think twice about.

A simple routine to follow

1. Scan every receipt the day you get it.
2. Check that vendor, date, and total are right.
3. Test a reproduction. Export or print a report and compare it with the paper originals. Section 7 of Rev. Proc. 97-22 allows destroying the originals only after you have done your own testing that shows records are being reproduced correctly, and have procedures to keep it that way. A self-check like this is a start, not proof that you've met that test.
4. Once a quarter, open a few old receipts and make sure they're still readable. This is a separate habit.
5. Keep a short note on how you store and back up your records.
6. Keep each record for the longest period that could apply to you.
7. Export a full report at tax time, and save a copy somewhere separate from your phone.

More from SoSo Family

If you need to scan non-receipt paperwork into PDFs and sort them into folders, Scanory handles documents. If you drive for work, Milesheet logs mileage and receipts for gig drivers. Scanory is free to download with a banner ad. Milesheet is free to download, with paid options (a tax-year export, an annual subscription, or a lifetime purchase). Both are built with privacy in mind. We're here to help.

FAQ

Can I throw away a paper receipt after I scan it?

Both agencies describe conditions under which paper can be disposed of after imaging. The IRS wants testing first. Don't discard until you've verified the copies are complete and readable, and check whether you need the paper for other reasons, such as insurance or a loan.

Is a phone photo the same as a scan?

We found no IRS wording that explicitly approves phone photos. Aim for clear, complete captures that meet the legibility and searchability conditions, and test a reproduction.

How long do I keep receipts?

Generally 3 years for the IRS, longer in the cases in the table above, and at least 6 years for CRA business records.

Does the app make my records IRS-ready?

No. It helps you capture, search, and export. Whether your overall system meets the requirements is a judgment you (or your tax professional) need to make.

Sources: IRS, Rev. Proc. 97-22 (IRB 1997-13); IRS, "How long should I keep records?"; IRS Publication 583; IRS Publication 463; CRA, electronic record keeping. All checked 2026-10-19.

This article is general information, not legal, tax, or accounting advice. Rules change, so confirm details with the IRS, the CRA, or a qualified professional.