Anybody know what the legal requirement to keep tax records? I recall it being 7 years for one reason or another. I mean, I still have my tax records and pay stubs going back to '94.
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David
The chief cause of failure in this life is giving up what you want most for what you want at the moment. -
I heard it was five years. I keep mine for about ten years as they don't take up much room when you do them on computer and save every to disk. But mine are fairly simple so there isn't a large paper trail. I have scanned the paper documentation of deductions and saved them on the disk with every thing else.
Tom -
http://www.irs.gov/publications/p552/index.html
No one set period of time. See "How Long To Keep records"Last edited by Guest; 02-01-2007, 09:22 PM.Comment
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You only want to keep tax records as long as the statutes require. If you get audited and IRS requests records that extend past the statute requirements (and they would), you are required to provide them. By providing records, they become subject to IRS review and audit. If you don't provide the records after the IRS requests them and they find out, you are in serious trouble.
By destroying records that have passed beyond the statute of limitations you are reducing your risk of IRS action. How lovely would it be to explain to a IRS agent "I'm sorry sir, but those records have passed the statute of limitations and have been destroyed"?
Before you destroy the records you have to ask yourself: a) what is my risk of getting audited by the IRS in the first place, b) what is the risk that IRS would find anything in your old records and c) what is the chance that I would need them?
For me, it's zero, zero and zero so I get rid of my records at the first opportunity.
Just some thoughts.
GregComment
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If you read table 3 of the link MILDOC posted above you'll see The IRS suggestions. Consider that table and then consider if the posibility exists of you ammending your previously filed returns. If you don't think you'll ammend it and it was filed correctly in the first place then IMHO you should destroy past supporting documents other than securities info after 3 years. As also stated above the IRS can ask for older info but if it no long exists then the trail ends there. I've also asked this of a CPA and for most average working class taxpayers this holds trueOpinions are like gas;
I don't mind hearing it, but keep it to yourself if it stinks.
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