Back to top

Blog

Click here to go back
Oct 12 2015
Record Retention Requirements

Posted in general

Dear Client,

In response to many requests of what tax records should be kept and how long, we have prepared the following list for your reference based on Federal Laws.

Income tax returns and supporting documents - Keep at least 4 years and preferable 7 if space is not critical. Once this period has elapsed, the documents can be discarded, but the returns themselves, which do not take much space,

should be retained indefinitely.

Residential property records - All escrow statements (purchase and sale) plus receipts for improvements should be kept for at least 4 years after the property is sold (including refinance papers).

Purchase receipts for stock, bonds, mutual funds - These should also be kept for at least 4 years after the asset is sold: This would include record of dividends, splits and reinvested dividends. "

Depreciation records For any rental real estate or depreciable business property you own, keep records of the property’s cost, date acquired, and schedule of depreciation claimed in previous years. This record should be kept

until 4 years after the property is disposed of.

Retirement plan contributions — Records of non—deductible lRA deposits, employer plan stock purchased, rollovers, and Keogh plan deposits should be kept until 4 years after the plan assets have been withdrawn.

 

 Personal records - Important papers such as estate and gift returns, divorce and property settlement, deeds, title insurance policies, and all trust documents should be kept in a permanent file, or perhaps safe deposit box.

Miscellaneous papers - All other documents to include bank statements, canceled checks, credit card statements, deposits slips, charitable contribution receipts, and medical bills can be discarded after 7 years.

Last Updated by Admin on 2015-10-12 09:58:48 PM

News

A Win for Taxpayers: Disaster Related Extension of Deadlines Act

When disaster strikes, taxpayers are already dealing with enough. Rebuilding homes, replacing belongings, and caring for loved ones should take […] The post A Win for Taxpayers: Disaster Rela...

Wait to receive your W-2 form or other income statements to file your tax return

The Taxpayer Advocate Service (TAS) wants to help you be prepared for the tax filing season. One way to avoid […] The post Wait to receive your W-2 form or other income statements to file you...

Santa, Please Remember Taxpayers This Holiday Season

Santa, Please Remember Taxpayers This Holiday Season         ‘Tis the season! Many of us make wishes this time of year, so […] The post Santa, Please Remember Taxpayers This Holiday Season ap...

National Taxpayer Advocate Erin M. Collins Recognized as a Standout Leader in Accounting Today’s Top 100

National Taxpayer Advocate Erin M. Collins Recognized as a Standout Leader in Accounting Today’s Top 100 National Taxpayer Advocate Erin […] The post National Taxpayer Advocate Erin M. Collin...

Use caution when paying or receiving payments from friends or family members using cash payment apps

Digital Payment Applications & Taxes Here’s something important to pay attention to if you use certain cash applications to send […] The post Use caution when paying or receiving payments...

Filing a Petition with the United States Tax Court

  Filing a Petition with the United States Tax Court Taxpayers have the right to appeal an IRS decision in an […] The post Filing a Petition with the United States Tax Court appeared fir...

Giving Tuesday: Giving Back and Staying Tax Smart

Giving Tuesday: Giving Back and Staying Tax Smart Every year after Thanksgiving, millions of Americans come together for Giving Tuesday, […] The post Giving Tuesday: Giving Back and Staying T...

A Win for Taxpayers: Internal Revenue Service Math and Taxpayer Help Act

A Win for Taxpayers: Internal Revenue Service Math and Taxpayer Help Act Pressed for time? Listen to a summary of […] The post A Win for Taxpayers: Internal Revenue Service Math and Taxpayer ...

Tax filing related resources for military members and families

This filing season, the Taxpayer Advocate Service wants to remind military members and their families about available free tax filing […] The post Tax filing related resources for military me...

What Should I Do If I Receive Someone Else’s Information From the IRS?

If you receive information from the IRS that doesn’t belong to you, this is known as an inadvertent unauthorized disclosure. […] The post What Should I Do If I Receive Someone Else’s Informat...