2006-09-20 13:56:43 · 9 answers · asked by Rod K 1 in Business & Finance ➔ Taxes ➔ United States
There is a statute of limitations restricting how far back the IRS can audit lawfully completed tax returns. The standard length is 3 years and an exceptional limit of 6 years exists for returns that are highly understated (highly=25% of gross income). There is no limitation on fraudulently filed tax returns. So keep your documents for at least 6 years and do not commit fraud :)
2006-09-20 15:33:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You are subject to a general IRS audit for three years back from the current tax year. In 2006 you will need all your 2005,2004,2003 records if audited. If you are “suspected” of tax fraud you are subject to audit forever. You are required by most states to keep "business records” for 7 years. If you had any Schedule C activity your tax returns are for sure a business record. There are other legal matters that can arise that it would be to your advantage to produce your tax records. I currently have a situation involving thousands of dollars, which will require 15-year-old tax records, be produced to make a legal point. That case has nothing to do with the IRS but those records are the best evidence available (who would ever lie to the IRS) to prove a given issue. The best answer is to keep income tax records until three years after you are dead because of estate taxes and all of the other legal matters in which they can be helpful. I would take a deduction for the cost of the file cabinet necessary to do so if you only use it for tax records.
2006-09-21 10:05:16 · answer #2 · answered by ? 6 · 0⤊ 0⤋
At least 7 - 10 years.
2006-09-20 21:04:15 · answer #3 · answered by tim h 3 · 0⤊ 0⤋
IRS will look for 6 years of tax returns if you get audited, but other than that, I dont think it matters
2006-09-20 21:03:59 · answer #4 · answered by billyandgaby 7 · 0⤊ 0⤋
You should keep for @ least 7 to 10 yrs.
2006-09-20 20:59:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think you can get audited back seven years. Safe to say hold records for ten.
2006-09-20 21:05:37 · answer #6 · answered by galbee 3 · 0⤊ 0⤋
You should keep your just your W-2s forever, you may need them to dispute Social Scurity benefits.
2006-09-20 23:32:04 · answer #7 · answered by johnnylakis 4 · 0⤊ 0⤋
personal tax papers at least 7 years. for business i would say say for at least 10 years or more...............
2006-09-20 21:49:06 · answer #8 · answered by churchonthewayseniors 6 · 0⤊ 0⤋
7 years "or more" is my corporate office's "advice".
2006-09-20 21:04:19 · answer #9 · answered by detecting_it 3 · 0⤊ 0⤋