2007-01-02 09:48:48 · 6 answers · asked by cwdw 1 in Politics & Government ➔ Other - Politics & Government
Some records need to be kept virtually forever, to prove tax basis of something inherited. If the value was declared on Form 706, then the IRS may be bound under certain circumstances. If the estate tax is allowed to die after 2010, then you will need to keep such records forever, since capital gains tax will be levied if ever sold -- and that could be a hundred years later. (But it's unliikely that a Democratic Congress will extend the estate tax repeal after its 2010 sunset given the huge deficits and the depreciation of the dollar.)
Otherwise there is the normal tax statute of limitations. It is wise to keep basic records for six years. If an accounting is filed with probate court (not required in NY or many other states) then that, at least, and a copy of the 706 (if filed) should be kept at least that long.
The papers of the estate of the first spouse to die may well be needed at the death of the second. When my Mom died, the IRS tried to levy a huge tax based on legal incompetence in the writing of my Dad's will (for the technically inclined, it dealt with a right of invasion of the bypass trust, and IRC §§ 2036 & 2041). Only because his accountant had kept estate records for twenty (20) years did we beat down the IRS demand by 90%.
2007-01-02 10:02:28 · answer #1 · answered by Anonymous · 1⤊ 0⤋
They should be kept for seven years because the IRS goes back seven years if there is an audit. But if you are like me I keep them for as long as possible because this is an estate and you might want to past down the info to generations.
2007-01-02 09:53:25 · answer #2 · answered by rezoli001 1 · 0⤊ 0⤋
sure I do and that, too. i will remember issues back to surely being 3 years previous. I remember unbelievable my doll's laundry on a garments line. My mom even took a image. surprising and the unusual reality I nonetheless savour doing it in basic terms with my truthfully clothing as an person.
2016-11-25 23:23:43 · answer #3 · answered by richeson 4 · 0⤊ 0⤋
usually they are destroyed after 7 but if in doubt keep it handy.. maybe ask your family advisor if it is something that should be put in the family safe or safety deposit box.
2007-01-02 09:51:05 · answer #4 · answered by yourmygoodfeeling 3 · 0⤊ 0⤋
I would keep them indefinitely. That way, no matter what, no one can come back years from now and whine about things.
2007-01-02 09:52:21 · answer #5 · answered by Starla_C 7 · 0⤊ 0⤋
I think it is 7... ask your accountant
2007-01-02 09:50:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋