Tax season can be a stressful time of gathering records and getting all of your paperwork together, but after you've filed, you should still keep those records on hand for the next few years. The accountant team at Tudor Wilson & Associates CPAs in Honolulu, HI, explains the importance of keeping this documentation and how long you should store the files.

Why You Need to Keep Tax Records

There are a number of benefits to keeping tax records around. For one, they can help you keep track of your financials for yourself and your business by comparing fiscal years to each other. Further, it can make tax services simpler for the coming year. The Internal Revenue Service recommends keeping them in the case that they need to conduct an audit or inspection—having all of your paperwork in one place can speed up the process.

How Long Should I Keep Them?

This varies for each business and individual, but most accountants recommend keeping them for three years if you've not been audited or had any IRS inspections. If you have, or you have claimed losses, it's best to keep them stored for up to seven years. If you're an employer managing employee's tax returns, keep them for at least four years.

If you're looking for a trusted accountant to help with your tax return or tax preparation, look to the team at Tudor Wilson & Associates CPAs in Honolulu, HI. Whether you need help filing your returns, maintaining your tax records, or simply want to better understand your taxes, their team is ready to help. Their CPAs have helped the community since 1999 and have earned a reputation in the area so you can rest easy knowing you’re getting the best help. To learn more about their accounting services, visit them online or call (808) 592-2000 to speak with a trusted CPA today.