When Tax Time is Over, What Can You Toss Out?
When it comes to Taxes and filing a return, people either
want to keep everything, or throw it all away. While the IRS certainly wants Taxpayers to keep their important documents, there is a balance that can
be struck. Here are a few general
guidelines that can be followed when dealing with your Tax records.
If a
Tax Return is filed correctly and on time, the supporting documents can be
thrown away (after shredding) after about 3 years. If information in the Tax
Return is not accurate, the documents should be saved for at least 6 years. That is how long the IRS will
legally be able to start an audit. If no Tax Return was filed or it was
fraudulent, there is no statute of limitations. Criminal action could be
brought at any time.
Some items that can be shredded
and thrown away are documents that have nothing to do with your Taxes. Records
that are not related to deductions or credits claimed. Paycheck stubs can also
fall into this category. Not everyone agrees on this subject, so please talk to
your Qualified Tax Professional for advice that covers your particular
situation. If for some reason later on you are in need of supporting documentation, your Tax Professional should be able to provide them.
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