How long should reimbursement documentation be retained?
Short answer
Retain reimbursement documentation for at least seven years from the date of the expense to satisfy extended audit windows, certain IRS situations, and most regulatory frameworks—though the IRS baseline requirement is generally three years.
On Ramp, all reimbursement receipts, transaction details, and approval history are automatically stored and remain accessible in your account for the duration required by business and legal purposes, ensuring you meet retention requirements without manual filing.
Why seven years is a best practice
The IRS requires most business records to be kept for three years from the date you file your return. However, several factors can extend this period, making seven years a common best practice for reimbursements:
- Extended audits: If income is underreported by more than 25%, the IRS can audit up to six years back
- Certain deductions: Situations like deductions for bad debts or worthless securities require a seven-year retention
- SOX compliance: Publicly traded companies must retain audit work papers and related audit documentation for seven years
- Best practice buffer: Seven years covers most regulatory scenarios and provides audit protection
Organizations in regulated industries may need longer retention:
- HIPAA-covered entities — Six years minimum for certain HIPAA-required documentation (policies, procedures, notices, authorizations)
- Government contractors — Contract period plus three years after completion
- State requirements — Some states mandate longer periods for specific tax and payroll contexts
What documents to retain
Keep complete documentation for each reimbursement:
- Original receipts showing vendor, date, amount, and itemization
- Reimbursement request with business purpose and expense category
- Approval records showing who authorized the reimbursement
- Payment confirmation showing when and how the employee was reimbursed
- Any supporting documentation (mileage logs, travel itineraries, client names)
These elements satisfy both IRS substantiation requirements and internal control best practices.
How Ramp handles retention
Ramp automatically captures and stores all reimbursement documentation:
- Receipt collection — Employees upload receipts via mobile app, email forwarding, or text message at the time of submission
- OCR extraction — Transaction details are automatically extracted and stored as structured data
- Approval trails — Every approval, rejection, and policy check is timestamped and preserved
- Payment records — Direct deposit confirmations and payment dates are logged
- Audit history — All edits, corrections, and reviewer actions remain visible
Records can sync to your ERP, while the complete audit trail can remain accessible in Ramp based on your configuration and retention policies. You can export reimbursement data and receipts at any time for external audits or year-end reviews.
Organizations with specific compliance requirements should consult their legal or audit teams to determine if longer retention periods apply.
Related questions
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