Here is a topice that comes up quite often, and this would pertain to everyone. This is something that I have been asked quite a bit over the last 7 years Since I opened my Tax Practice.
The question is "HOW LONG DO I HAVE TO SAVE MY TAX RECORDS?".
As all of us know the IRS has tyically three years to audit a return. But it has 6 years if it suspects that the return understates income by more than 25%. and there is no statute of limitations applies if FRAUD is involved or the personal fails to file a return.
To Help determine which records to toss and which to keep at the end of tax season I am passing this retention list to all. This is based on Legal as well as Tax considerations.
Here is the listing:
The following papers should be KEEP FOREVER
Copies of Tax Returns
Tax/Legal Correspondence
Audit Reports
Contracts and Leases
Real Estate Records
Corporate Minutes & Records
Items that should be Keep for 6 YEARS
Bank Statements
General Ledgers and Journals
Sales Records and Journals
Personal Investment Records after the sale of>
IRA Records After withdrawal of>
The following items should be Keep for 3 YEARS
Employee Payroll Records (Pay Check Stubs)
Employee Expense Records (Company Drivers or persons working for a company and are not reimbursed for there expenses)
Cancelled Checks
Paid Vendor Invoices
Depreciation Schedules (Tax Life of asset plus 3 years )
Explaination of last item;
When you bought the Truck which is depreciated over 3 years with a 4 year life, after that truck is fully depreciated you must keep the record of that depreciaton for 3 additional years.
If anyone has any questions, Please contact me at
Frank's Tax & Business Services
226 S. Cherokee St
Kings Mountain, NC 28086
(704) 739-4039
or E-mail me through this web site, or Directly at [[email protected]]
The question is "HOW LONG DO I HAVE TO SAVE MY TAX RECORDS?".
As all of us know the IRS has tyically three years to audit a return. But it has 6 years if it suspects that the return understates income by more than 25%. and there is no statute of limitations applies if FRAUD is involved or the personal fails to file a return.
To Help determine which records to toss and which to keep at the end of tax season I am passing this retention list to all. This is based on Legal as well as Tax considerations.
Here is the listing:
The following papers should be KEEP FOREVER
Copies of Tax Returns
Tax/Legal Correspondence
Audit Reports
Contracts and Leases
Real Estate Records
Corporate Minutes & Records
Items that should be Keep for 6 YEARS
Bank Statements
General Ledgers and Journals
Sales Records and Journals
Personal Investment Records after the sale of>
IRA Records After withdrawal of>
The following items should be Keep for 3 YEARS
Employee Payroll Records (Pay Check Stubs)
Employee Expense Records (Company Drivers or persons working for a company and are not reimbursed for there expenses)
Cancelled Checks
Paid Vendor Invoices
Depreciation Schedules (Tax Life of asset plus 3 years )
Explaination of last item;
When you bought the Truck which is depreciated over 3 years with a 4 year life, after that truck is fully depreciated you must keep the record of that depreciaton for 3 additional years.
If anyone has any questions, Please contact me at
Frank's Tax & Business Services
226 S. Cherokee St
Kings Mountain, NC 28086
(704) 739-4039
or E-mail me through this web site, or Directly at [[email protected]]
