04/30/2014
Tax documents – what should you keep and what should you shred?
April 15 has come and gone, you’re done with your tax return and now have a pile of papers. So what should you keep after you’ve gotten your refund and for how long? Below are the general guidelines.
- Three years: Tax return forms and schedules plus all information to support what you claimed on your return, especially records related to property, investments, or business assets. While there are exceptions, the IRS generally has 3 years to assess additional tax and audit returns. Not coincidentally, three years is also the amount of time you have to amend your return. The state of Georgia also has 3 years to audit your state tax return.
- Six years: Forms W-2, 1099, etc. because the IRS has six years to contact you if you've failed to report income.
Seven years: Any information regarding loss from worthless securities or bad debts.
- Certain documents, such as those related to home, property or investment, should be kept for an even longer period of time.
If you have any questions about this topic, please call (770) 817-7550 or visit www.primefilers.com.