How Long Should I Keep Records?


         Congratulations on making it through another Tax Season! We did it together. After going through all the records and receipts to put together a complete Tax Return, there are probably a lot of papers that have been put in files. A logical question to ask is: How long do I need to keep all these records? Since the Tax Return has been filed, can I throw the documents away? Every situation is different and State taxes are not treated the same as Federal, but in general you should hold on to them.

          Tax records should be kept for at least 2-3 years. In the event of an audit, its scope usually goes back 3 years. Having the records on hand and ready to hand over will speed up the process. If a Taxpayer were to claim a loss from a bad debt deduction, that Tax Return should be kept at least 7 years. For those who do not file a Tax Return, their records should not be thrown away. These figures are just from the perspective of the IRS. If some records are related to property that is insured, then there are other factors to consider.

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