Keeping good records after you file your taxes is a good idea, as they will help you with documentation and substantiation if the IRS selects your return for an audit. Here are five tips for keeping good records.
- Normally, tax records should be kept for three years.
- Some documents, such as records relating to a home purchase or sale, stock transactions, IRAs, and business or rental property, should be kept longer.
- In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return. The same applies for state returns.
- Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, charitable contribution letters and documentation, and any other records to support deductions or credits you claim on your return.
Call or email us today if you need more information on what kinds of records you should keep and for what period of time.