| One of the most confusing aspects of taxes is | | | | |
| tax records. How long is one supposed to keep | | | | If you own property or a business then it is |
| these important records is often up for | | | | a good idea to keep these tax records |
| debate and most people do not bother saving | | | | separate from your personal tax papers. A |
| them all. | | | | separate file will suffice. Be sure to keep |
| | | | all documents that you need and remember that |
| The first thing that should be noted is that | | | | there are different documents needed for |
| one should do more than keep their actual tax | | | | different forms of filings. |
| returns. It is just as important to keep your | | | | |
| receipts and other documents like bank | | | | Property records to keep for example are |
| statements that support the things you have | | | | documents such as records of home |
| put onto your tax forms. One is really just | | | | improvements made over the years you have |
| as important as the other. | | | | owned the home or property. These can affect |
| | | | many aspects of taxes, such as the value of |
| Audits do happen and in case they happen to | | | | the home and what is can or has sold for and |
| you, it is important that you have all of the | | | | your taxable gain. Mortgage statements are |
| documentation that you need in a handy place | | | | another important piece of documentation to |
| at home. It is wise to consider starting a | | | | keep on hand. |
| file either in a file cabinet or perhaps on a | | | | |
| shelf or even in a drawer. Keep these | | | | Forms such as W-2s must be kept as these are |
| important tax documents separate from other | | | | the forms that show the amount of money you |
| papers to avoid confusion and loss. | | | | have earned and the tax you have already paid |
| | | | on it. 1099 forms on the other hand show the |
| If you choose to file electronically | | | | money earned from other sources such as |
| online-as more and more people are beginning | | | | investments and interest. Both of these will |
| to do-you need to remember to request hard | | | | be things needed to verify the information |
| copies of these documents right away. They | | | | you have stated on your tax returns and they |
| can often be mailed to you quite quickly. | | | | will be some of the first documents that the |
| | | | IRS asks to see in the case of an audit. |
| IRS audits are not the only reason why it is | | | | |
| important for people to keep good tax | | | | The bottom line is that the IRS has years to |
| records. There is also divorce. Unfortunately | | | | audit you. IF they fear there has been fraud |
| many people do not stay married and when you | | | | committed on your tax returns they can audit |
| do get divorced it can get ugly. Assets can | | | | you at any time, even if it is ten years |
| be complicated to divide and having a good | | | | later. You should keep your tax records for |
| tax records with all of the appropriate | | | | at least that long, many experts will |
| documents on hand can be a real asset to you | | | | recommend that you keep them indefinitely. |
| and your own personal finances. | | | | |