How long to keep your tax return records
Every person residing in the USA knows the importance of tax filing as per the IRS guidelines. So, they do all the necessary things to make sure that the tax return is made before the given duration. Every person residing in the USA and earning through some sources is liable for paying tax as per IRS guidelines. Many people do not know about tax return keep how long as per the IRS guidelines. It is important to know this duration along with documents needed here. Usually, you can keep the tax records for three years as per the IRS.
What tax records I need to keep?
Getting the question of Tax Return how long to keep is common. While filing the tax, you need to keep some of the important tax records that can be useful further. After filing the return, the tax records can be kept for three years. Also, once you pay the tax, the tax return can be kept up to two years. The duration of the three years is necessary for the IRS for auditing your income. It is also important for you as a taxpayer to amend the tax return wherever applicable.
Why holding tax records are important?
Holding the tax record is very important for the person in the USA. It can be beneficial in many circumstances.
Here are some of the circumstances where it can be useful:
- To claim the loss incurred through any of the unimportant securities or deductions did through bad debt.
- Your return shows the underreported income and the amount is lesser than 25% of your original income
- You want to claim a refund or any credit after filing the tax returns. This is usually after filing the tax returns.
- If there is any tax fraud or you could not file the tax for the given duration
Is there any rule for keep a tax record?
- Keep the records for around 2 years from the date you make the payment for the tax, you can claim the refund or credit if applicable.
- All the documents related to the income you are gaining.
- Ensuring that file the proper Form along with the schedule, wherever you after applicable as per the IRS.
- All the aspects that are related to making the refund claim.
When can I get rid of tax documents?
Ensure that you do not throw the tax documents immediately after tax filing. They will be necessary at any point further. Usually, it is recommended that the taxpayers must keep the documents for at least 6 years. In case, non-filers or defaulters the tax documents must be kept forever. Throwing the tax document immediately can make the tax aspects more complicated. So, keep the tax documents more safely.
How can I store documents and keep it safe?
Keeping the documents safe is very important. If you have the hard copies, take a few photocopies then keep the original and photocopies at separate locations. In case, you have the e-copy of the tax records then you can put it on the Email, drive, pendrive, etc. So, there are many such ways to keep the documents safe.
