General Guidelines
Maintaining proper records for tax documents is crucial for compliance and support of tax returns. Here are some general guidelines to follow:
Retention Period
Tax Returns: Keep copies of tax returns for at least 7 years from the later of: the tax return due date or the date the return was filed.
Supporting Documents: Retain documents that support tax returns (W-2s, 1099s, receipts) for at least 3 years from the later of: the tax return due date or the date the return was filed.
Property Records: If property or other assets where sold, keep records related to the purchase and sale for at least 7 years after the sale.
Business Records: For business owners, keep records for at least 7 years, especially if you have employees.
Exceptions to Retention Periods
Fraudulent Returns: If you filed a fraudulent return, keep records indefinitely.
Unfiled Returns: If you did not file a return, keep records indefinitely.
Best Practices for Document Storage
Digital Copies: Consider scanning documents and storing them in a secure digital location for easier access and backup.
Secure Storage: Use secure methods for storing both physical and digital documents to protect sensitive information. Digital access to documents should have a two-factor authentication at a minimum.
Regular Review: Periodically review stored documents to ensure you are not keeping unnecessary records.
Conclusion
Following these guidelines will help ensure the maintenance of necessary documentation for tax purposes while minimizing the risk of losing important information. Always consult with a tax professional for specific advice related to your situation.
ความคิดเห็น