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Filing taxes produces a great deal of paperwork, which many people are eager to dispose of after submitting their return. However, you should generally keep most of your documentation in case your bookkeeper or accountant needs to refer to it later. Some deductions for business expenditures, for example, must be spread out over multiple years, or the IRS may decide to audit your return. In general, it’s a good idea to keep most of your paperwork for up to three years, but it may be in your best interests to store it for even longer.

What Types of Documentation Should I Keep?

bookkeeperAfter filing, you should keep all the wage and earning statements, including any W-2s and 10-99s, you received for the year, along with a copy of the return itself. You should also file away any mileage logs, receipts for deductions you claimed, or any other documentation that will support your deductible spending. Essentially, if you have a document that supports the information you submitted on your tax return, you may need it later.

How Long Do I Need to Keep My Records?

The statute of limitations on most tax issues is three years, so plan to hold onto your records for at least that long. This means that you have three years from your filing date to amend a return and claim another deduction or correct a miscalculation, and the IRS can pursue additional taxes for any mistakes you’ve made. However, in some instances, your bookkeeper may recommend keeping your documents for six years, or even longer. If you forgot to file a return for a specific year, the IRS could demand an audit at any time, so you’ll need to hold those receipts indefinitely.

 

If you need an accountant, Hal Surratt CPA in High Point, NC, offers a range of professional bookkeeping and tax preparation services, as well as quality financial management advice. Visit their website to learn more about how they can help take the pressure out of preparing your taxes or call (336) 861-4024 to schedule an appointment with an experienced bookkeeper today.

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