Tax time is upon us! Here's some info on how long you should keep important documents?

Is it time for you to hand over your bookkeeping to someone so you can be free to focus on what you do best?  I have referrals for bookeepers, CPA's and business bookkeeping services.  Get in touch and I'll share some of my resources with you.  

Here's the general rule set by the IRS: The IRS recommends keeping tax-related documents for at least six years. An audit can be performed up to six years after filing if an error is suspected.

 

One Month:

»receipts for non-deductible items

»deposits / ATM slips

» reconciled bank statements

 

1-3 Years:

»paystubs

»bank records

»insurance policies

»investment statements

»mortgage statements

»receipts for charitable contributions

»all business-related documents

 

7+ Years:

»income tax returns (federal and state)

»W-2s and 1099s

»medical bills

»contracts

»receipts for tax-deductible items

»mileage records »cancelled checks

»real estate tax forms

»credit cards statements that contain purchases used as tax deductions

»retirement plan contributions

 

FOREVER:

»birth certificates

»social security cards

»passports

»education records

»auto titles

»investment statements

»home improvement receipts*

»receipts from major purchases*

»wills

»current insurance policies

»medical records

»pension / retirement contracts

»property agreements

»IRA contribution records

»mortgage documents (INCLUDING payoff/reconveyances)

»life insurance policies

»safe deposit box inventory

 

*for insurance purposes

 

 

Download the printable file to keep in your tax folder here.