How long do you have to save tax records.?

Answer 1

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. Retaining your W-2 forms to confirm your Social Security Benefits when you begin to collect is always advisable. 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.

Answer 2

In all actuality the IRS can audit you past the 3 back-year mark. The 3 year rule only applies to your statute to be able to amend a return, and claim a refund. Otherwise, if you did not pay your taxes in 1992, the IRS can get you for it. I have learned this after spending countless hours on the phone with the IRS trying to help new clients in my Tax office resolve past issues... Keep your general individual tax records 7-10 years, business tax records, well, just keep them...

Answer 3

3-10 years

Answer 4

It depends on the type of records. The minimum is 3 years. That is how long the IRS has to audit your return without alleging fraud. Some records should be retained forever. The link below is the IRS recommendations.

Answer 5

Another vote for "forever". My father passed away in the 1990's; this year, my mother lost her ability to handle her finances. She doesn't remember which of her kids are alive or dead, let alone what she paid for something umpteen years ago.

Luckily, we have tax returns and purchase documents for stocks, fine artwork, and house and renovations, so that we can compute the capital gains tax on the things we sell. Tucked away in the files were the estate returns of not just my father, but also several aunties and grandparents, enabling us to have the value on the date of inheritance for lots of big-ticket items.

Invest in a big filing cabinet.

Answer 6

Copies of tax returns and original back-up documentation for 7 years. File each year's documents in a box labeled by the year.

Don't keep: Documents past the 7 year limit, unless an adviser suggests you hang on to it for longer. Remember to shred any sensitive documents when you do get rid it of it.

Answer 7

I was always thinking it was 7 to 10 years

Answer 8

Forever! That is how long they keep the records. It is always best to have backup just in case. Keep them underlock and key and NEVER toss them!

Answer 9

seven years

Answer 10

Take 'em with you to your grave!