i have a business and need to know when to throw the receipts away? Does anyone know?
2006-12-14 05:28:31 · 9 answers · asked by rlelec01 1 in Business & Finance ➔ Taxes ➔ United States
IF you... THEN the period is...
1. Owe additional tax and situations (2),
(3), and (4), below, do not apply to you 3 years
2. Do not report income that you should
report and it is more than 25% of the
gross income shown on the return 6 years
3. File a fraudulent return Not limited
4. Do not file a return Not limited
5. File a claim for credit or refund after
you filed your return Later of: 3 years or
2 years after tax
was paid
6. File a claim for a loss from worthless
securities or a bad debt deduction 7 years
Pub 583 http://www.irs.gov/publications/p583/ar02.html#d0e2390
2006-12-14 06:05:35 · answer #1 · answered by T D 2 · 0⤊ 0⤋
They say 7 years but hang on to them longer if it had anything to do with your federal taxes.. recently I found some old receipts and it was a good thing too they had messed up something on my taxes and I had the proof.. that stuff was over 10 years old!
2006-12-14 05:59:53 · answer #2 · answered by Tapestry6 7 · 0⤊ 0⤋
3 to 5 years. The IRS can audit you up to 3 years back, 5 years if they suspect fraud. If you haven't filed a return, you better hold onto those receipts forever, cause the IRS can audit an unfiled return at any time.
2006-12-14 07:40:30 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋
Keep copies of W-2's and your filed 1040's FOREVER. I am an Enrolled Agent and have seen many people over the years have great difficulty if the question of tax fraud comes up and the lookback period for the IRS is forever.
Keep records for real estate for 10 years AFTER you sell it.
Keep regular records of expenses for 7 years.
Old bank checks-3 years.
2006-12-16 02:12:18 · answer #4 · answered by besttaxexpert 2 · 0⤊ 0⤋
I have a huge reciept box that i bought awhile ago and every time i accumulate reciepts i throw them in there, any reciepts food, gas, clothes, electronics, i usually keep mine for a couple years, then i go through and throw out the really really old ones, but it is good to keep the ones for big purchases such as televsions, computers, furniture (i keep those for a few years) the gas & food ones i throw away after about a year.
2016-05-24 03:42:42 · answer #5 · answered by Paula 4 · 0⤊ 0⤋
3 years. It gets very consuming but its very necessary. IF the IRS comes calling, you'll have everything you need to defend yourself. I got a very big filing cabinet and devoted the last two drawers to receipts.
2006-12-14 05:38:33 · answer #6 · answered by lavendertg 4 · 0⤊ 0⤋
You should check for state laws before disposing of any business records. Even if they are not needed for tax purposes, you may be required by law to maintain certain records for a fixed length of time or until certain conditions are met.
2006-12-14 10:57:09 · answer #7 · answered by STEVEN F 7 · 0⤊ 0⤋
I think most people recommend 3 to 7 years for tax purposes and for employment records.
2006-12-14 05:36:17 · answer #8 · answered by Anonymous · 0⤊ 0⤋
AT LEAST ONE YEAR!
2006-12-14 05:32:17 · answer #9 · answered by princess 1 · 0⤊ 0⤋