Tax Tip - Tax Documents Recordkeeping
Hey! Hey! Hey! Thinking of tossing old tax documents? Think before you toss.
Below is the Period of Limitations that apply to income tax returns.
You should keep records for:
3 years if situations (4), (5), and (6) below do not apply to you.
3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later if you file a claim for credit or refund after you file your return.
7 years if you file a claim for a loss from worthless securities or bad debt deduction.
6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
Indefinitely if you do not file a return.
Indefinitely if you file a fraudulent return.
At least 4 years for employment tax records after the date that the tax becomes due or is paid, whichever is later.
Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.
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