Is Your Credit Card Statement Naked? Why the IRS Cares—and What You Can Do About It

Let’s talk about something that might be exposing you to more than just awkward dinner conversations—your credit card statement. If it’s missing receipts, the IRS calls that “naked,” and while that might sound mildly amusing, the consequences are not.

The Problem with Naked Statements: No matter how accurate your books are, they need support. During an audit, the IRS won’t just take your word—or your spreadsheet’s word—for it. They want receipts.

• Receipts = what you bought

• Statements = proof you paid

• Together = a valid deduction

But here’s the kicker: paper receipts are like gremlins. They fade, rip, get coffee stains, or straight-up disappear when you need them most.

The Simple Fix: Go Digital You don’t need a scanner, a file cabinet, or a time machine. Just your phone and an app like:

• Shoeboxed

• Expensify

• Zoho Expense

What can you do with these?

• Snap a pic of the receipt before your leftovers hit the to-go box

• Save and tag it with the business purpose

• Sync it right into your accounting system

• Sleep better knowing your deductions are locked down

Don’t Let a Missing Receipt Cost You Hundreds (or Thousands) One misplaced Starbucks receipt from a business meeting might not seem like much—until you’re trying to prove that $300 deduction. Multiply that across a year, and you're bleeding money.

Be a Receipt-Tracking Rockstar Want to make this part of your weekly workflow without it feeling like a chore? I can help. Seriously, this is what I do (and I make it fun—yes, fun. You read that right.)