My wife was self employed for a while, how long does she need to keep her tax filings?

Answer 1

Three years is the recommende time that tax filing be kept.

Answer 2

5 years

Answer 3

I am a tax professional in the U.S., so I don't know the official rules as to U.K. tax papers.

However, I normally recommend that my clients - particularly self-employed individuals - keep their tax filing papers and associated documentation until...

... they're grandchildren are sorting through boxes looking for hidden money after they pass away.

And, that's just a funny way of saying: "Keep 'em forever". Not because it is required by the tax agencies, but because the envelope or folder containing your tax papers is a very convenient repository for financial records... records that you may very well need later.

For instance, if you have to respond to a lawsuit, contest an insurance company finding, or any number of possible scenarios where you need to be able to RECONSTRUCT your financial history - having access to those records in an easily accessible place may very well be critical.

So, after sifting the file down to it's basic elements (tax papers, plus income and deduction support documents, and bank statements) you should have something less than a couple inches thick at most.

Even twenty years' of those files will probably fit into one cardboard file box.

Yes, you have to move it every time you move, and you have to keep it in a place that's dry...

But....when you need it... you will REALLY need it. So, having it available will be well worth the hassle.

Take care.

Answer 4

6 years

Answer 5

7 years

Answer 6

Like "askrich" said FOREVER !!

The IRS can go back as far as they desire during an audit as long as they keep finding out that you OWE THEM... as soon as they discover THEY OWE you the close the books, write out the check and head home. Just toss your papers up in the attic or under the stairs forever and let the IRS go through the cobwebs!!

You want to listen to the majority and only keep your papers a couple of years ???? WELL GOOD LUCK !! Better have a number for a good tax attorney when you get in a bind.

Answer 7

Steffi is virtually precise different than that she forgot that the NI thresholds are distinctive to the PAYE thresholds. Your spouse is virtually certainly an worker. thankfully if it somewhat is her basically income, as she is earning under the decrease income decrease (£95 each week this tax 12 months, £ninety each week interior the previous tax 12 months) then the revenues heavily isn't interested in you filling interior the employer place of work work as you would be making "a 0 return" besides, yet constantly well worth getting their clearance. She (and you as her employer) wont be paying any tax/NI till you pay her over £a hundred and ten each week (the commonplace Threshold). accomplish that, and you will discover that it is not only her that has tax to pay - yet in addition you as her employer.

Answer 8

About 5 years but i have heard they can investigate up to 10 years

Answer 9

The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out.

The time you are required to keep records includes the period of time during which you can amend your tax return to claim a credit or refund, or that the IRS can assess more tax. The following situations contain the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.
You file a fraudulent income tax return; keep records indefinitely.
You do not file a return; keep records indefinitely.
You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
Your claim is due to a bad debt deduction; keep records for 7 years.
Your claim is due to a loss from worthless securities; keep records for 7 years.
Keep information on an asset for the life of the asset, even when you dispose of the asset; keep records indefinitely.
Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
The following questions should be applied to each record as you decide whether to keep a document or throw it away.

Are the records connected to assets?
Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

If you received property in a nontaxable exchange, you must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition.

What should I do with my records for nontax purposes?
When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.

Answer 10

at least 5 years