ANSWERS: 1
  • <h4 class="dechead">On One Hand: Three-Year Rule

    The most important rule to follow when it comes to keeping your tax records is the Three Year Rule. This rule of thumb says you should keep your tax records for three years from the date that you filed them. This typically means four years from the date on the taxes. (For example, you file your 2009 taxes in 2010 and three years later is 2013 or 4 years after the tax year). The reason for this rule is because the IRS can audit you for up to three years after your taxes have been filed, so you want to have all information on file in case that happens.

    On the Other: Many Exceptions

    The three-year rule has many exceptions for people who don't necessarily pay their taxes properly. For example, if you don't always report income that you should report, then you need to keep your records for at least six years. If you file a claim for worthless security losses, you need to hang on to your records for seven years. And if you report fraudulently, then you'd better hang on to those records forever.

    Bottom Line

    You're only obligated to keep your tax records for three years if you've filed everything properly with no strange claims, but to be on the safe side, experts generally recommend that you hang on to your tax records for seven years.

    Source:

    Why Keep Tax Records for Seven Years?

    IRS Rules for Keeping Tax Records

    MSN: Keeping Tax Records

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