Revenue Proclamation 97–22 is what specifies all the rules for storing your tax documents electronically (to keep them in a format that would be accepted for audit):
In short, yes this is fine but comes with a few additional requirements over that which you would have to follow if keeping originals. Section 4 of the documents covers them all but in brief the most important ones are:
- An electronic storage system
must ensure an accurate and complete
transfer of the hardcopy or computerized
books and records to an electronic storage media. The electronic storage system must also index, store, preserve,
retrieve, and reproduce the electronically
stored books and records.
- the ability to reproduce legible and readable hardcopies (within the
meaning of section 4.01(3) of this revenue procedure) of electronically stored
books and records.
- All books and records reproduced by the electronic storage system
must exhibit a high degree of legibility
and readability when displayed on a
video display terminal and when reproduced in hardcopy...
- For purposes of this revenue
procedure, an ‘‘indexing system’’ is a
system that permits the identification
and retrieval for viewing or reproducing
of relevant books and records maintained in an electronic storage system.
Basically, you have to be able to ensure the records do not get damaged so are well backed up etc, that you can find and retrieve the correct ones on request, and that you can print good quality hard copies of any record. You must also be able to simply explain how your system works and how you make sure you have and can retrieve all important records the IRS may need on request.
There are some other more obscure requirements so check the document I linked above to see them all. Also check that your state tax office permits use of electronic records.
Other than that, I have been doing something similar to this for years and have never had an issue, though I do use OCR software on the scans to make them more easily searchable, or in the case of documents I have a digital original store that so it is searchable.
Go ahead, just make sure you follow IRS requirements.