I have been told that it is wise to save all invoices, receipts, bank statements, etc for 10 years in the event that I may be audited and have to produce said documents. After a search of the IRS' website, I found no official recommendations on how long to keep these documents. Anyone who has a background with taxes (i.e., you work for the IRS, you are a CPA, or you are a lawyer who deals with tax law) have any recommendations? Thanks.
2007-05-26 07:54:15 · 6 answers · asked by thetrexlers 1 in Business & Finance ➔ Taxes ➔ United States
We do itemize. I think we file a 1040-A, but I am not 100% sure. I am now married (filing jointly). When I was single I filed a 1040EZ, but now we are no longer eligible for that. Thanks for the help.
2007-05-26 08:13:17 · update #1
The recommended minimum is 7 years. That's for the simplest of returns.
If you have tax treatment items that last longer than that, keep the records as long as the tax issue lives. For example, if you own a home you'll need to keep the records for as long as you own the home plus 7 years. If you have capital loss carry-forward items, keep all records and tax returns for as long as there is any carry-forward amounts, plus 7 years.
If you have ever filed a Gift Tax return, you need to hold onto copies of those forever, especially if you ever used part of the lifetime exclusion amount. If you ever received a gift of property, the donor of the property should ideally give you a copy of the Gift Tax return they filed (possibly with their SSN redacted) since the Gift Taxes paid, if any, will affect your cost basis of the property if you ever dispose of the property. You should keep that copy of the Gift Tax return for as long as you hold the property plus 7 years.
2007-05-26 10:12:31 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 2⤋
5 years
2007-05-26 07:57:08 · answer #2 · answered by WC 7 · 0⤊ 0⤋
The statute of limitations for auditing a tax return is 3 years from the date it is accepted/filed, unless there is fraud involved and then it is 6 years. If the IRS finds criminal fraud they can go back further than 6 years. I personally keep my records for 5 years--(I haven't committed any criminal activity).
Do keep records for your home at least 3 years past the time you sell the house. I personally will keep anything unusual or special forever along with the returns that go with them.
2007-05-26 16:34:18 · answer #3 · answered by Tater1966 3 · 0⤊ 0⤋
Unless you can use a portion of them for income tax purposes for some reason, then after 1 year would not be necessary. Actually, each month when I receive a new bill and make sure my payment was credited correctly, I throw the old bill away.
2016-05-18 03:42:14 · answer #4 · answered by ? 3 · 0⤊ 0⤋
The recommended time is 7 years......however if you do not itemize, and have fairly simple returns.......3 years is more than enough......tell me a little more about your filings and I can answer more thoroughly..........Tommy
2007-05-26 08:01:57 · answer #5 · answered by tommyeureka 2 · 0⤊ 0⤋
I believe it's 7 years.
2007-05-26 08:04:14 · answer #6 · answered by MaryAnne 2 · 0⤊ 0⤋