How Long Do You Need To Keep Tax Returns?
Tax season is an annual event that we all need to understand and deal with. One thing that you might not think about is how long do you need to keep tax returns? It’s important to know what the applicable rules are and how long you need to keep your tax returns. This article will explain everything you need to know about keeping your tax returns.
What Is the General Rule?
The general rule is that you should keep your tax returns for six years after filing them. It’s important to note that this period is determined by the filing date, not the date in which you received the refund. This means that if you file your taxes on April 15, but don’t receive your refund until June 15, the six year period would still begin on April 15. Keeping your tax returns for six years is an important rule to follow. You never know when you may need to access the information contained in your returns.
What About Amended Tax Returns?
If you’ve filed an amended tax return, the IRS still requires that you keep the original return and all related documents for at least four years. This is because amended returns can be audited and you will need to show the supporting documents. Therefore, if you have filed an amended return, you should make sure to keep the related documents for at least four years.
What Are the Reasons for Keeping Tax Returns?
There are several reasons why you should keep your tax returns for at least six years. First, the IRS may need to reference the information contained in your returns for audit purposes. The six year period allows the IRS to audit your return and assess any additional taxes that may be due. Second, if you have sold a property within the last six years, you will need to reference the tax information contained in the return to complete the sale. Finally, if you are applying for a loan or other financial assistance, you may need to provide tax returns as proof of income.
How Should You Store Your Tax Returns?
It’s important to store your tax returns in a secure place. You should never store your returns in an unsecured location such as a car or a desk drawer. It’s best to store your returns in a fireproof safe or filing cabinet. You can also opt to save your returns in a secure online storage system such as Dropbox or Google Drive. This will allow you to access the returns anywhere in the world.
How Long Do You Need to Keep Tax Returns After Death?
If you are responsible for managing the estate of a deceased person, you should keep the tax returns for at least seven years after the death. This will ensure that you are in compliance with the applicable laws and regulations. You should also keep any related documents such as wills and trusts for at least seven years.
Conclusion
By keeping your tax returns for at least six years, you can ensure that you are in compliance with the applicable laws and regulations. You should also store your returns in a secure location such as a fireproof safe or filing cabinet. Finally, if you are responsible for managing the estate of a deceased person, you should keep the tax returns for at least seven years.