Doe do most people take of their tax returns? Do you keep the file folders of receipts of all your expenses?

Question

I'm just wondering because I don't have a big business, but it seems that I am always doing paperwork. I must have created a 100 new 2007 file folders today for all the bills. Then I have to organize all of 2006's, to make for 2007 files. I have to type them up because they look soo much nicer. This is so incredibly time consuming that it goes into 2am. Someone have a better way to deal with filing and storage of the taxreturns and all its supporting paperwork.

Answer 1

if you have a business you just have to do that. you have to keep records of all your transactions not only for tax purposes, but for your income and expense reports. that way you keep track of your bookkeeping.

even those who do not have business keep records of their expenses if they intend to itemize when they do their taxes at the end of the year. also, people are suppose to keep their tax returns for the last 10 years whether they have a business or not. you never know when the IRS may call you in. i have been called in for taxes over 4 years old.

just remember, it may take you until 2 am to do all this but what you accomplish is good for the whole year. so, that isn't really so bad! if you divide how many hours are in a year with how many hours it took you to prepare the 2007, it is less than 1% of your time........NOT BAD!

Answer 2

Welcome to the wonderful world of the IRS. You can save a lot of work by (a) maintaining a checking account used just for business. (b) keeping a credit card, likewise. You will probably find it useful to use software such as Quickbooks to handle the accounting; you can use it to print the checks so you don't have to hand-write them. One more entry on the check form will take care of the accounting classification, and you can get a report from the program for just about anything you want. Once the bill has been entered into Quickbooks, stamp it with Entered and the date, and toss it in a box. Unless the IRS comes calling, you will never have to look at it again; after three years, the box goes into the trash.

Answer 3

Speak with a CPA. Explain to them how yoour business works and how you work. Let them suggest ways of keeping your records so that they can do the number crunching at the end of the year much more easily. Good accountants like clients like that because:
Their fees are lower and the client is more likely to pay
They are still able to bill all the time spent so it is profitable for the CPA
They can spend time doing work for other clients, meaning more profit.

Answer 4

You might be better off to have a GOOD, RELIABLE company
to complete your return for you. They will stand behind the
return should you be audited. It'll cost a little bit, but it may
be worth it. As for saving files and expenses, the company
completing your return will have a magnetic file and return
the originals to you if you ask. Just be sure you do business
with a reputable company...many out there will not stand behind
what they do.

Answer 5

you're able to keep your tax return archives for a minimum of three years for extensive-unfold tax returns and a minimum of seven years if its a corporation or it consists of corporation earnings on your tax return.