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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