how long must one save federal income tax returns?

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

The basic answer is 3 years from the later of: (1) the due date of the return or (2) the date the return was actually filed. However, if the return contains carry-forward items, such as charitable deduction carry-forward, or short-term capital loss carry-forward, then it must be kept longer. The IRS generally has 3 years from the due date or 3 years from the filing date to audit a return. However, if there is a material misstatement of earnings or deductions, or if there is fraud, then there is no time limit.

Answer 3

I am currently representing a client who is getting audited by the IRS for the tax year 1997. Just keeping the 3-7 year rule citers in perspective.

Answer 4

You are all wrong. There is no requirement to maintain or produce records. You are protected under the 1st, 4th, 5th, and 6th Amendments ot the Constitution for these united States of America. If you are ever called to appear, to produce books and records, ask but two questions:

1) Please provide me with your Statutory Delegation of Authority, signed by the Secretary of the Treasury before I show you anything. (Look it up; no Delegation of Authority document exist for IRS Agents, nor can they be issued under Law.)

2) Can any of these documents be used against me or my heirs, at any time, past, present, or future, in any proceeding against me in any Civil, Criminal, or United States Tax Court trial? (No matter their answer, state: I hereby exercise my 4th and 5th Amendment rights to be secure in my possessions and property, and to not be compelled to be a witness against myself.)

Case closed. They have no lawful authority. They can't compell you to incriminate yourself. There is no Law requiring a citizen of the united States of America to pay income taxes. Look it up. The IRS has even admitted in Federal Court it is not an official government organization. There was no 'organic' act of Congress creating the (fraud called the) IRS.

Answer 5

Chuck D's advice sends people to jail every year. You may have noted he listed '9 Supreme Court decisions, and 13 Appellate Court Decisions' as sources, but DID NOT NAME A SINGLE CASE.

Answer 6

In theory three years; in real live and actuality save all the returns you ever file as you are dealing with idiots and computers. I have seen the darndest things go missing over the years.

Answer 7

3 years is what they require, but like the previous person answered, I'd keep them longer. Say seven years. That's the amount of years they can go back to audit any returns.

Answer 8

5-7 but technicly 7 years

Answer 9

The tax professionals say three years, IRS goes back as far as seven years, I save mine for ten years.

Answer 10

Forever. There are time limits to when the IRS can go back and audit you for mistakes, but there is no time limit if they allege fraud on your part, so keep them until you die.