Tax Records: How long do I keep them?

Tax Tip: Keep Good Records

There are many reasons to keep records including for filing taxes, insurance purposes or for getting a loan. When it comes to your tax records, the IRS says the following:

• Keep tax records three years from your date of filing (April 15th if filed before deadline) or two years after you pay the tax

• Keep records indefinitely if you file a fraudulent return. There is no statute of limitations on fraud.

• Keep employment tax records at least four years after the date that the tax becomes due or is paid, whichever is later.

Basic Records to keep include:

INCOME

- Form(s) W-2

- Sales Slips and Invoices

- Form(s) 1099

- Form(s) K-1

- Bank Statements

- Brokerage Statements

EXPENSE

Purchase Invoices

Receipts Proof of Payment

Cancelled Checks

Charitable Giving Letters

HOME

- Closing Statements

- Receipts of Improvement Costs

- Insurance Records