Tax season is approaching… and you’ve probably been looking at all the paperwork and wondering, how long do I need to keep this stuff? Well, it isn’t as long as you think!
The IRS says:
“You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support items shown on your return until the period of limitations for that return runs out.” Need more clarity?
Here are some tips from
Generally, you should keep any and all documents that may have an impact on your federal tax return.
Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:
• Bills, Credit cards and Invoices
• Mileage logs
• Checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return
If you aren’t saving bills / statements, verify that you can request records from a service provider for at least three years after you close your account, just in case you need a statement.
You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property.
Visit the above website for specific information related to small business owners, especially for employee records.
A word of caution regarding digital storage: Some websites suggest that you store old tax returns electronically in order to cut down on paper storage in your home. Please consider the risk associated with online data storage sites. Large organizations promising security and privacy are still susceptible to hackers. Your tax return contains extremely confidential information, and if stolen could provide significant identity theft opportunities. Be wary and careful when weighing your options.
If you’re facing paper overload in your home office, Gig Harbor Home Management’s professional organizing team can bring some calm to your chaos. Call us today 253.225.4864