i think you all are missing the question here. if he computerizes his records, obviously he will need reliable backup and off-site archival.

the question is really, are computerized records acceptable to the IRS? In his specific case, he asks whether scanned images of the original invoice/receipt is adequate documentation during an audit. I would appreciate an answer to this question as well.

On another loosely related question: I heard that a while back the IRS changed the policy to only require physical receipts for expenses over $75, from the previous $25 threshold. This is also the threshold my employer uses...however, I have been unable to find it specifically mentioned in an IRS publication...could someone point me to the proper location? And, for expenses under the $75 threshold, is it acceptable to just have an electronic log of the expense maintained in an excel spreadsheet or in quickbooks/quicken?

thank you.