Business & Investing
Sponsored by

Quick Question Regarding Tax Prep and Returns

474 Views | 7 Replies | Last: 9 yr ago by The Collective
Stive
How long do you want to ignore this user?
AG
We're cleaning out some storage and files and I'm really wanting to trash/shred some old tax prep stuff. How long are you supposed to keep all of your tax records? I don't plan on throwing any of the returns or actual schedules away but what about all of the "other" stuff (receipts, bank statements, etc.)?

Old Buffalo
How long do you want to ignore this user?
AG
I think 3 years is the look back, but thank God I'm not an expert in taxes. I'll let someone who handles that make the final call.


I also believe it's STATUE of limitations.
Stive
How long do you want to ignore this user?
Dr. Doctor
How long do you want to ignore this user?
AG
I usually keep all my stuff for 7 years. When I file for the next years (so 2014 next year), I will shred all of the files from 2007.

For an organization, I just took over for financial guy. We are supposed to keep 10 years worth of stuff. I will probably scan the semi-annual audits after that (digital copy) and then shred the stuff 10+ years old (as we have boxes of stuff/records).

~egon
The Collective
How long do you want to ignore this user?
AG
Most businesses have a greater documentation requirement from a regulator other than the IRS. I THINK the general rule is 3 years from the tax due date (so April 15). You could keep an extra year or two if you wanted to be safe. Be sure you keep documentation for any assets that are still in service or being depreciated in the years that can still be audited.
Stive
How long do you want to ignore this user?
AG
quote:
Most businesses have a greater documentation requirement from a regulator other than the IRS. I THINK the general rule is 3 years from the tax due date (so April 15). You could keep an extra year or two if you wanted to be safe. Be sure you keep documentation for any assets that are still in service or being depreciated in the years that can still be audited.
Which years "can still be audited"?
The Collective
How long do you want to ignore this user?
AG
Basically, I am saying you need to be able to substantiate your assets on the tax returns that fall into the 3 year period referenced. So, while you might be throwing away a lot of documentation from 7 years ago, there might be documents within those files that substantiate an asset you are still depreciating. Keep the records related to that asset.
Stive
How long do you want to ignore this user?
AG
So....keep anything that might still have ties to assets currently in use or that factor in on the last 3 years of returns. Don't throw any returns away. Feel free to shred all other documents/receipts/statements going back more than 3 years?
The Collective
How long do you want to ignore this user?
AG
I did say generally. Here are the rules, note the rules on amended returns if applicable and the rule on employment tax records.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-long-should-I-keep-records
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.