Keeping good records after you file your taxes is important, as it will help you with documentation and substantiation if the IRS selects your return for an audit.
Here are five tips from the IRS about keeping good records:
- Normally, tax records should be kept for three years at a minimum.
- Some documents such as records relating to a home purchase or sale, stock transactions, IRAs, and business or rental property should be kept longer.
- In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return.
- Records you should keep include bills; credit card and other receipts; invoices; mileage logs; canceled, imaged, or substitute checks; proofs of payment; and any other records that support deductions or credits you claim on your return.
- View IRS Publication 552, Recordkeeping for Individuals on the IRS website at www.irs.gov or by calling 800-TAX-FORM, (800) 829-3676.
View PYA s Record Retention Schedule for recommendations on retaining these records and other documentation. If you have any questions about the information above, please contact the expert listed below at PYA, (800) 270-9629.
WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW. THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
