| Most tax deadlines are easy to remember like the filing | | | | Keep indefinitely copies of your tax returns. Yes, there |
| deadline or the due date to pay estimated tax | | | | is the statute of limitations is 3 years but it will not apply |
| payments however, when it comes to how long to | | | | if the IRS suspects it was fraud or filed falsely. Keep |
| keep tax records, most people do not have a clue. So | | | | those tax returns. Something else to consider is that |
| you want to know, how long to keep tax records? | | | | without your knowledge the IRS changes many |
| The easy answer is until the statute of limitations | | | | returns. The original may be necessary if IRS records |
| expires for that tax return. Records that should be | | | | are magically different from what you filed. |
| kept include receipts, canceled checks, and other | | | | Keep tax records that relate to any claim with the IRS |
| documents needed to prove to the IRS your filing was | | | | for a tax refund or tax credit that was based on bad |
| legitimate! This is usually three years from the DUE | | | | debts or losses on worthless securities for at least |
| DATE for the tax return or when the return was | | | | seven years. You may find you need these in the |
| actually filed with the IRS or two years from the date | | | | future. |
| the tax was actually paid to the IRS, whichever is | | | | Net operating loss (NOL) can be carried back 2 years |
| LATER. This is generally accepted as the time period | | | | and carried forward 20 years. It is very important for |
| in which the IRS can question your tax return. | | | | you to keep your tax records until all net operating |
| NB: If you do not file your taxes or file a fraudulent or | | | | losses are used to offset taxable income and the |
| false tax return there is no statue of limitations. This is | | | | carry forward term expires. Add the 3 year statute of |
| what trips up a lot of people, when the IRS comes | | | | limitations on the tax returns filed with the IRS that |
| knocking after 5 years and all of the tax records have | | | | used the carry forward. |
| been discarded after 3 years. You MUST know, it is | | | | Beware: If it is found by the IRS that you understated |
| the IRS that will claim that a tax return was fraudulent | | | | your gross income by 25% or more the statute of |
| or false. Not filing any taxes at all is self explanatory. | | | | limitations will be doubled to 6 years. Take this advice, |
| Some tax records should be kept indefinitely, like | | | | if there is anything EVER questioned on your tax |
| property tax records. These records will be required to | | | | return, keep the return and all supporting |
| prove to the IRS your gain or loss when you sell the | | | | documentation indefinitely |
| property. | | | | Also, in a case where a fraudulent tax return has been |
| Statute of Limitation provisions differ, here are some | | | | filed, or no tax return has been filed with the IRS, the |
| you should keep in mind: | | | | IRS can make this assessment at any time. |
| You should retain documents verifying the value of | | | | Finally: An employer must keep all employment tax |
| real estate or stock until you sell them and realize a | | | | records for a minimum of 4 years after the taxes are |
| gain or loss plus the three-year statute of limitations on | | | | due the IRS or have been paid, which ever is later. |
| the tax return filed after that sale with the IRS. | | | | |