The length of time you should keep your tax records depends on a number of factors, including the action, expense or event the document records. Here are a few brief guidelines:
Keep your tax returns and supporting documentation until the statute of limitations runs for filing returns or filing for a refund. In most cases, the statue of limitations (SOL) for assessment of taxes expires three years from the due date of the return, or the date that you file, whichever is later. An extension of the due date for filing the return does not change the date the statute of limitations starts to run.
Thanks for the reminder to folks. I knew this thanks to a class on tax law but I realize most folks don't. What this means is that the IRS can go back three years for an audit -- unless it's a case of fraud. For fraud they can go back more time.
ReplyDeleteThis is why I pay a local tax service to worry about all this crap for me.
ReplyDeleteI still need to do my state
ReplyDeleteToday's Politi-fact caught my attention... anytime Michelle Bachmann opens her mouth, my knees shake at the stupidity...
ReplyDeleteHmmm ... I still have copies of every tax return I've ever filed. Believe it or not, it came in handy. My employer lost records from my early days with the company and had miscalculated my years of service. My copies of old W-2 forms sure came in handy when my HR person asked whether I had any evidence of my employment from years ago.
ReplyDeleteI have piles of returns dating back to the 80's. I've never bothered to go through them. Thanks for the advice, I may start shredding.
ReplyDeleteWe save 'em forever. Maybe we should start getting rid of them.
ReplyDelete