Do You Need To Keep Your Old Tax Returns?
Now that you have filed your taxes for 2020, you wonder what you should do with your old records from previous years. Should you keep them? Can you shred them and trash them away? Here’s our advice. 😊 The IRS gives taxpayers three years to claim any tax refund that they have coming to them, but the IRS also has three years to audit your tax return or assess any additional tax due, and ten years to collect any tax that you may owe. So our advice is the minimum time that you will need to hold on to your tax return and supporting documents is three years from the time that you filed them with the IRS or the due date, whichever was later. You will want to keep your tax return form with your supporting forms; W-2s, 1099 or other, and documents; records for itemized deductions, child care expenses and any other documents that you used to report your tax liability. Now the three-year timeframe will not apply for taxpayers who may have other circumstances including omission of income, fraudulent reporting, IRS audit and etc.
For best practice, we recommend you keep all your records for 7 years. Need help with taxes? Please do not hesitate to call us at (832) 295-3353. You can also set up an appointment with us at https://xqcpa-bookme.acuityscheduling.com/schedule.php. Last but not least, please like and share our daily posts.