Tax filing season is upon us and while the amount of paperwork required for your Denver tax return depends on exactly what and how you have to file, the question remains - what to do with all of this information once the return has been accepted.
Depending on if you are able to itemize, there may be receipts, payroll reports, mileage records, medical statements, stock reports, in addition to tax payments on annual reports like property or vehicles. The amount of paperwork can, at times, feel overbearing but once the return is filed, a question about the amount of time each should remain tends to arise.
Initially, the most basic answer for keeping tax records and documents it forever. This is the only guaranteed method to keeping your information in tact and available to any Internal Revenue Service (IRS) employee should it be needed.
Unless the depiction of fraud is prevalent, generally IRS audits
cannot be executed on returns filed after they are three years old. For most Americans, this is a good time limit to keep the required information on hand but there are some exceptions.
If in doubt, one of the most prevalent time frames for potentially destroying your tax return records revolve around seven years. At this point, even stock or capital gains/losses can be removed after being filed previously in the seven years prior.
Questions about the amount of record keeping needed are often met with this answer. While the exact specifics of any IRS inquiry into your return may not be revealed until a later date - following three years only in the event of suspected fraud or miscalculation - seven is a solid number for backup materials but the actual return should remain in your possession for much longer.
Even after the return is filed and any related documents are disposed of, keeping the return itself forever should be strongly considered by each taxpayer. While the backup may be disposed of, typically the 1040 summary form on the return doesn’t extend past two or three pages and should not require an inordinate amount of space to keep. At least by holding on to these records, individuals always have proof that a return was filed for any given year. Should the IRS make a mistake and question you about a past return, simply producing the 1040 would warrant that the applicable of taxes were paid when required.
The tax experts at Bloch Rothman and Associates
are able to assist with completing your tax responsibilities or examine the impacts of other factors onto your return. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us
today. Available for all of your tax needs and filings there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!