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