Now that the tax-filing season is over, it may be a good time to clean up your records. Below are some guidelines for both paper and electronic files:
The IRS normally has up to three years after the due date to audit your tax return. However, they may look back six years after the due date if they suspect you substantially underreported income or committed fraud.
If you want to play it safe, keep supporting documentation for seven years (2012 return until 2019) before shredding. Supporting documentation would include W-2, 1099s and cancelled checks or credit card statements that substantiate deductions.
REMEMBER – To avoid ID theft, shred everything you are tossing!
Written by Jerry Ricciardo, CFP®
This article is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal or investment-planning advice as individual situations will vary. For specific advice about your situation, please consult with a lawyer or financial professional.
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