Share:

Whether you are working with a tax service to streamline your bookkeeping or are concerned about a possible IRS audit, your past tax documents are vital pieces of evidence. You need to keep these records accessible—but for how long? The answer depends on exactly what you’re doing with the documents and on your tax return.

Your Baseline

Tax ServicesAt a minimum, you need to keep all your tax documents for three years after they were filed. This is long enough to cover the statute of limitations for tax claims under normal circumstances. If you are audited, assessed additional taxes by the IRS, or discover that you are owed a larger return, you’ll need these documents.

Employment Tax Records

If you are a business owner and responsible for paying employment taxes, these records should be kept for slightly longer than other tax documents. Four years from the year of payment is enough to cover your obligations and ensure you won’t have to pay twice.

Property Records

If your documents are related to a property you own, you should keep them for longer—until the statute of limitations expires after the property has been sold or otherwise disposed of. This way, you’ll have a record of any depreciation, amortization, or depletion deductions affecting the value of the property.

Fraudulent Returns

Your accountant or tax service will strongly advise you against committing tax fraud or failing to file a return. However, if you have done so, you’ll need to keep the relevant documents indefinitely to limit the potential damage. If you are caught, having accurate tax records will help determine the amount of back taxes you owe—a number which, without evidence, would likely be interpreted in a biased manner.

 

If you need a tax service to help you prepare your taxes or advise you on document storage, choose Cloyd & Associates PSC in London, KY. Serving all of Laurel County, they offer experienced and savvy guidance for your personal and business finances. To get started, contact them at (606) 864-8110, and visit them online to learn more about their services.

tracking