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After many years in the workforce, you probably have an abundance of old tax returns, paperwork, and pay stubs taking up room in your filing cabinet. Even if you work with an experienced CPA, you’ll still need to keep track of your tax documents. However, you don’t need to hold onto them forever. Linda M. Shiraiwa CPA, PS, in Gig Harbor, WA, wants to help you understand which items you can shred and when you can get rid of them.

The Three-Year Rule

Generally, you’ll want to hold onto your tax documents for three years after you file your return. The IRS has a three-year statute of limitations for petitioning for a corrected tax refund. This also protects you in the event of an audit. The IRS typically can only pursue you for additional tax liability within the three-year period if there was an error with your reported income.

What You Should Keep

CPAKeep all your tax return information, including W-2 statements, 1099 forms, and all supporting documents, for the full three years. This ensures you have all the information you need if you’re contacted by the IRS or discover an error on one of your refunds. If you itemize your deductions, keep those receipts and expense reports as well. Should you have questions about additional documents, speak with your CPA to determine if they’re necessary.

How You Should Store Them

Your tax return contains a lot of personal information and sensitive data. The last thing you want is for an unauthorized person to access these files. Place your tax information, as well as your other important documents, in a fire-proof safe and keep the key or combination secure. This way, they’ll be safe from prying eyes.

Work with Linda M. Shiraiwa CPA, PS, and get the most out of your tax return. Her firm will help with all your financial needs, whether you’re looking for tax help or need full accounting services for your small business. Visit her website for more information, and call (253) 858-6030 to schedule a consultation today.

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