---
title: "What records should a reseller keep? IRS rules"
description: "The IRS lets you use any system that clearly shows income and expenses. For each inventory buy, keep proof of the payee, amount, date, payment and item."
canonical: https://resellerindex.com/tax/irs/what-records-should-a-reseller-keep/
last_updated: 2026-10-23
publisher: "The Reseller Index"
---

# What records should a reseller keep for the IRS?

**The IRS doesn't require a particular kind of records: you can use any system that clearly shows your income and expenses, as long as supporting documents such as receipts, invoices and statements back up each entry.** For inventory you buy to resell, IRS guidance says those documents should identify the payee, the amount paid, proof of payment, the date and a description showing the amount was for purchases.

General information from IRS sources, not tax advice. It doesn't say what you should file; check with a tax professional about your own situation.

Checked against the IRS pages listed below on Oct 19, 2026.

## What the IRS says

> "Except in a few cases, the law does not require any specific kind of records. You can choose any recordkeeping system suited to your business that clearly shows your income and expenses."

[Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583), Recordkeeping: Kinds of Records To Keep; page reviewed or updated Apr 30, 2026.

> "Your supporting documents should identify the payee, the amount paid, proof of payment, the date incurred, and include a description of the item to show that the amount was for purchases."

[What kind of records should I keep](https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep), Purchases; page reviewed or updated Aug 3, 2026.

> "Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction."

[Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583), What if I don't have a canceled check?; page reviewed or updated Apr 30, 2026.

> "If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment."

[Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583), Recording Business Transactions: Business checkbook; page reviewed or updated Apr 30, 2026.

## The records the IRS lists, matched to reselling

Publication 583 sorts supporting documents into a few groups. The first two columns are the IRS's; the last is how the same group usually looks for an online seller.

*IRS lists from Publication 583 (12/2024) and, for car expenses, Publication 463 (2025), Table 5-1. The reseller column is our illustration, not IRS text.*

| Group | Documents the IRS lists | What that usually is for a reseller |
| --- | --- | --- |
| Gross receipts | Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips, Forms 1099-MISC and 1099-NEC | Each selling app's sales and payout reports, any Form 1099-K, bank deposits, a receipt book for cash sales at a market or show |
| Inventory | Canceled checks, cash register tape receipts, credit card sales slips, invoices | Thrift, estate-sale and auction receipts, wholesale or lot invoices, and the card or bank statement that shows the payment |
| Expenses | Canceled checks, cash register tapes, account statements, credit card sales slips, invoices, petty cash slips for small cash payments | Platform fee statements, shipping label history, supply receipts, software subscription invoices |
| Car and truck | For each business use, the mileage, the date, the business destination and the business purpose, plus the total miles for the year | A log of sourcing runs and post office trips |
| Assets | When and how you acquired the asset, purchase price, improvements, section 179 and depreciation deductions, how you used it, when and how you disposed of it, selling price, expenses of sale | Records for a label printer, computer, shelving or a vehicle used in the business |

## Proof of payment is only half of it

Publication 583 accepts some account statements in place of a canceled check. A credit card statement has to show the amount charged, the payee's name and the transaction date; an electronic funds transfer statement has to show the amount transferred, the payee's name and the date the transfer posted.

That shows you paid. It doesn't show what you bought. Publication 583 says proof of payment by itself doesn't establish a deduction and suggests also keeping documents such as credit card sales slips and invoices, and the IRS's records page notes that a combination of supporting documents may be needed to cover every element of a purchase.

## Scanned receipts and bookkeeping software

The rules for paper records apply to electronic ones. Publication 583 says an electronic storage system has to index, store, preserve, retrieve and reproduce the records in legible format, and points to Revenue Procedure 97-22 for the details. Paper originals may be destroyed once the system has been tested to reproduce them in compliance with IRS requirements and procedures are in place to keep it compliant.

Bookkeeping software works too. Publication 583 says the computer records have to reconcile with your books and return and carry enough detail to identify the underlying source documents.

## A separate business account

Publication 583 suggests opening a business checking account and keeping it separate from your personal account, depositing all receipts into it, and noting the source of each deposit and the type of each expense. It also says to avoid writing checks payable to cash.

## Worked examples

### A $47.18 thrift-store run

You pay $47.18 by card for nine books to resell. The card statement shows the payee, the amount and the date; the itemized receipt shows what you bought. Kept together, they cover the elements the IRS lists for purchases. If you track cost per item, the run works out to $5.24 a book ($47.18 divided by 9, rounded).

### Cash at a yard sale, no receipt

You pay $20 cash for a box of 40 DVDs and the seller has no receipt. Publication 583 says to make an adequate explanation in your records at the time of payment, so the note written that day might read: the date, the address, $20 cash, 40 DVDs for resale, $0.50 each.

## Edge cases

- If you run more than one business, Publication 583 says to keep a complete and separate set of records for each one.
- Car expenses have their own record rules in Publication 463. It says a record made at or near the time has more value than one prepared later, and a log kept weekly counts as timely.
- If you have employees, the IRS says to keep employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later.
- A Form 1099-K reports gross payments. Your own sales, fee and refund records are what connect that gross figure to your profit: see [what to do if a 1099-K looks wrong](https://resellerindex.com/tax/irs/wrong-1099-k-what-to-do/).

## What to do

1. Save each selling app's annual sales, fee and payout reports when the year closes, next to any Form 1099-K. [Where each app keeps its reports](https://resellerindex.com/guides/sales-reports-for-taxes/).
2. For each inventory buy, keep the itemized receipt and the card or bank statement that shows the payment.
3. For a cash buy with no receipt, write the note the same day: date, place, amount and what you bought.
4. Keep a mileage log as you go if you drive for sourcing or shipping.
5. If you scan receipts, keep the scans indexed and legible before any paper goes.
6. Check with a tax professional about what your own records need to show.

## Questions

### Is a credit card statement enough proof for a thrift-store purchase?

It proves payment if it shows the amount, the payee's name and the transaction date. Publication 583 says proof of payment by itself doesn't establish a deduction, so the itemized receipt or an invoice is what shows the purchase was inventory.

### Do I need special bookkeeping software?

No. Publication 583 says that except in a few cases the law doesn't require any specific kind of records. If you use software, its records have to reconcile with your books and return.

### Can I throw away paper receipts after scanning them?

Publication 583 says originals may be destroyed once your electronic storage system has been tested to reproduce them in compliance with IRS requirements, with procedures to keep it compliant. Revenue Procedure 97-22 has the details.

### How long do I keep all of this?

Generally until the period of limitations for the return runs out, which is usually 3 years. The longer cases are on [how long to keep tax records](https://resellerindex.com/tax/irs/how-long-to-keep-tax-records/).

## Related questions

- [How long should a reseller keep receipts and sales records?](https://resellerindex.com/tax/irs/how-long-to-keep-tax-records/)
- [How does cost of goods sold work for items you resell?](https://resellerindex.com/tax/irs/cost-of-goods-sold-for-resellers/)
- [What is the 2026 standard mileage rate for sourcing and shipping trips?](https://resellerindex.com/tax/irs/standard-mileage-rate-2026/)
- [What should a seller do with a wrong Form 1099-K?](https://resellerindex.com/tax/irs/wrong-1099-k-what-to-do/)
- [Form 1099-K for resellers: the $20,000, 200-transaction test](https://resellerindex.com/guides/1099-k-for-resellers/)
- [State rules: marketplace sales tax and state 1099-K thresholds](https://resellerindex.com/tax/states/)
- [All federal tax answers for resellers](https://resellerindex.com/tax/irs/)

## General information, not tax advice

This page summarizes IRS publications, instructions and guidance as read on Oct 19, 2026. It doesn't say what you should file or deduct. Tax rules depend on your facts, and state rules aren't covered here (see [state rules](https://resellerindex.com/tax/states/)). Check with a tax professional.

## Sources

Every figure, rule and quote on this page comes from one of these official pages.

- [Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583) (IRS, page reviewed or updated Apr 30, 2026; read Oct 19, 2026)
- [What kind of records should I keep](https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep) (IRS, page reviewed or updated Aug 3, 2026; read Oct 19, 2026)
- [Recordkeeping](https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping) (IRS, page reviewed or updated May 1, 2026; read Oct 19, 2026)
- [How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) (IRS, page reviewed or updated Jun 30, 2026; read Oct 19, 2026)
- [Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463) (IRS, page reviewed or updated Apr 30, 2026; read Oct 19, 2026)

Subscribe: https://resellerindex.com/subscribe/

Want these numbers next to your own sales? The Profit Toolkit, $29 once (our own product)

One Excel workbook you own: the fee calculators for 7 platforms (not TikTok Shop), USPS Media Mail and Ground Advantage tables, a minimum-price builder, a profit log and a monthly P&L. Instant download; refund within 30 days if it doesn't help.

[Buy the Toolkit: $29](https://buy.stripe.com/fZudR97YV8ZB3YL05ogjC03) [See what's inside](https://resellerindex.com/toolkit/)

---

The Reseller Index

Researched and drafted with AI assistance from each platform's and carrier's own published pages. A full-time reseller runs The Reseller Index and will edit every newsletter issue once the newsletter starts. Every number links to its source and carries the date we checked it. Spot an error? [Tell us](https://resellerindex.com/corrections/) and we'll fix it in the public corrections log.

General information, not tax, legal or financial advice. Not affiliated with or endorsed by eBay, Amazon, Mercari, Poshmark, Depop, Whatnot, Etsy, TikTok Shop, USPS, the IRS or the software companies whose prices we track; their names belong to them.

Each page shows the date its own rates were last checked. Sponsored placements are always labeled "Sponsored".

© 2026 The Reseller Index. No trackers, no ad cookies.