Your Best Audit Defense Is Records
One rule sits behind everything the IRS says about deductions: if you can’t prove it, you can’t deduct it. Good records turn a scary letter into a quick reply.
A deduction you can’t document is a deduction you can lose. The artist who saves receipts and logs the reason for each expense wins an audit before it starts — because the answer is already on file.
What to actually keep
- Income records: every 1099, plus your own log of cash, app payments, merch, and show money nobody sent a form for.
- Receipts and invoices for every business expense — studio time, gear, plugins, travel, promo.
- Bank and card statements from a separate account you use only for music.
- Mileage and travel logs — the date, the miles, and the business reason.
- Contracts and agreements that show why money moved.
Write down the "why"
A receipt shows what you spent. What the IRS wants is the business reason. Jot a note on each one — "studio session for the single," "flight to the show," "logo for the release." That one habit is the difference between a deduction that holds and one that gets thrown out.
How long to keep it
As a general rule, hold your records for at least three years from when you filed. Some situations call for longer — keep bigger items and anything tied to an asset for as long as it matters. When in doubt, keep it. Digital copies are fine; snap a photo of paper receipts before they fade.
This is general education, not tax advice — Done Deal Digital isn’t a CPA firm. What actually applies to you depends on your income, your records, and your situation. Before you act, run it by a qualified CPA or tax professional.
That’s the short version
Set up the system once, stay covered for years
The full chapter hands you a simple, artist-proof recordkeeping setup — what folders to make, what to photograph, and how to keep it going so an audit letter is a five-minute reply instead of a panic.
Get the Guide — $39 →Or get all seven tax guides in one — The Complete Tax & Money Guide, $99 →