Tax season is never fun. It can be tiring, confusing, and often stressful. But once you've filed your taxes and received your refund (or paid your balance due), you may be wondering how long you should keep your tax returns. After all, they're important documents, and you don't want to lose them. But you also don't want to keep them around forever. So, what's the right answer?
The answer to that question depends on a few factors, including your personal financial situation and the type of tax return you filed. In general, however, it's a good idea to keep your tax returns for at least three years. This is because the IRS can audit you for up to three years after you file your return. If you're audited, you'll need to be able to provide the IRS with your tax returns and other supporting documents.
For more information on how long you should keep your tax returns, read on.
how long to keep tax returns
Follow these tips to ensure you keep your tax returns for the right amount of time.
- Keep returns at least 3 years.
- Keep returns 6 years if claimed losses.
- Keep returns 7 years if filed late.
- Keep returns indefinitely if under audit.
- Keep returns until refund received.
- Keep returns until tax debt paid.
- Keep returns until property sold.
- Keep returns until business closed.
By following these tips, you can ensure that you have the necessary tax records to support your claims and protect yourself in the event of an audit.
Keep returns at least 3 years.
The IRS has three years to audit your tax return after you file it. This means that you should keep your tax returns for at least three years, in case you are audited. If you are audited, the IRS will ask you to provide them with your tax returns and other supporting documents. If you cannot provide the IRS with your tax returns, you may have to pay additional taxes and penalties.
- Keep records of all income.
This includes W-2s, 1099s, and any other documents that show how much money you earned during the year.
- Keep records of all deductions and credits.
This includes receipts for charitable donations, medical expenses, and any other expenses that you can claim on your tax return.
- Keep records of all tax payments.
This includes canceled checks, money orders, or other proof that you paid your taxes.
- Keep copies of your tax returns.
This is the most important record of all. Make sure you keep copies of your tax returns, even after the IRS has processed them.
By keeping your tax returns for at least three years, you can protect yourself in the event of an audit and ensure that you have the necessary documentation to support your claims.
Keep returns 6 years if claimed losses.
If you claimed a loss on your tax return, you should keep your tax returns for six years. This is because the IRS can disallow a loss if you cannot prove that it was legitimate. If the IRS disallows a loss, you may have to pay additional taxes and penalties.
- Keep records of all losses.
This includes receipts, invoices, and other documents that show how much money you lost.
- Keep records of all attempts to recover losses.
This includes correspondence with insurance companies, lawyers, and other parties.
- Keep records of all tax payments.
This includes canceled checks, money orders, or other proof that you paid your taxes.
- Keep copies of your tax returns.
This is the most important record of all. Make sure you keep copies of your tax returns, even after the IRS has processed them.
By keeping your tax returns for six years if you claimed a loss, you can protect yourself in the event of an audit and ensure that you have the necessary documentation to support your claims.
Keep returns 7 years if filed late.
If you file your tax return late, you should keep your tax returns for seven years. This is because the IRS has seven years to collect any taxes that you owe, plus interest and penalties. If you do not keep your tax returns for seven years, the IRS may be able to collect these taxes even if you have already paid them.
Here are some additional details about keeping your tax returns for seven years if you filed late:
- Keep records of all income.
This includes W-2s, 1099s, and any other documents that show how much money you earned during the year. - Keep records of all deductions and credits.
This includes receipts for charitable donations, medical expenses, and any other expenses that you can claim on your tax return. - Keep records of all tax payments.
This includes canceled checks, money orders, or other proof that you paid your taxes. - Keep copies of your tax returns.
This is the most important record of all. Make sure you keep copies of your tax returns, even after the IRS has processed them. This includes any correspondence from the IRS regarding your late filing.
By keeping your tax returns for seven years if you filed late, you can protect yourself from the IRS and ensure that you have the necessary documentation to support your claims.
It is important to note that the IRS may be able to collect taxes for more than seven years in some cases. For example, if you fraudulently filed your tax return or failed to file a return at all, the IRS may be able to collect taxes for an unlimited amount of time.
Keep returns indefinitely if under audit.
If you are under audit by the IRS, you should keep your tax returns indefinitely. This is because the audit process can take several years to complete. During this time, the IRS may request additional information and documentation from you. If you do not have your tax returns, you may not be able to provide the IRS with the information they need. This could delay the audit process and result in additional taxes and penalties.
- Keep all records related to the audit.
This includes correspondence from the IRS, copies of your tax returns, and any other documents that you have submitted to the IRS.
- Keep your tax returns organized.
This will make it easier for you to find the information that the IRS requests.
- Be prepared to respond to the IRS's requests for information.
The IRS may request additional information and documentation from you during the audit process. You should be prepared to provide the IRS with this information promptly.
- Keep copies of all correspondence with the IRS.
This includes letters, emails, and phone records.
By keeping your tax returns indefinitely if you are under audit, you can protect yourself and ensure that you have the necessary documentation to support your claims.
Keep returns until refund received.
If you are expecting a tax refund, you should keep your tax returns until you receive the refund. This is because the IRS may need to review your tax return before issuing the refund. If you do not have your tax return, the IRS may delay or even deny your refund.
- Keep a copy of your tax return.
This will help you track the status of your refund and provide the IRS with any additional information they may need.
- File your tax return electronically.
This is the fastest way to get your refund. You can file your tax return electronically using a tax preparation software program or through the IRS website.
- Use direct deposit.
This is the fastest way to receive your refund. When you file your tax return electronically, you can choose to have your refund directly deposited into your bank account.
- Check the status of your refund.
You can check the status of your refund online using the IRS's Where's My Refund? tool.
By keeping your tax returns until you receive your refund, you can ensure that you get your refund as quickly as possible.
Keep returns until tax debt paid.
If you owe taxes, you should keep your tax returns until the debt is paid in full. This is because the IRS can collect taxes for up to ten years after the due date of the return. If you do not keep your tax returns, the IRS may be able to collect the debt even if you have already paid it.
Here are some additional details about keeping your tax returns until your tax debt is paid in full:
- Keep records of all tax payments.
This includes canceled checks, money orders, or other proof that you paid your taxes. - Keep copies of all correspondence with the IRS.
This includes letters, emails, and phone records. - Keep your tax returns organized.
This will make it easier for you to find the information that the IRS requests. - Be prepared to respond to the IRS's requests for information.
The IRS may request additional information and documentation from you while you are paying off your tax debt. You should be prepared to provide the IRS with this information promptly.
By keeping your tax returns until your tax debt is paid in full, you can protect yourself and ensure that you have the necessary documentation to support your claims.
It is important to note that the IRS may be able to collect taxes for more than ten years in some cases. For example, if you fraudulently filed your tax return or failed to file a return at all, the IRS may be able to collect taxes for an unlimited amount of time.
Keep returns until property sold.
If you own property, you should keep your tax returns until you sell the property. This is because you may need to use the information on your tax returns to calculate your gain or loss on the sale. If you do not have your tax returns, you may not be able to accurately calculate your gain or loss. This could result in you paying more taxes than you owe.
- Keep records of all improvements made to the property.
This includes receipts for repairs, renovations, and additions.
- Keep records of all expenses related to the sale of the property.
This includes real estate commissions, closing costs, and legal fees.
- Keep copies of all correspondence with the IRS.
This includes letters, emails, and phone records.
- Keep your tax returns organized.
This will make it easier for you to find the information that you need.
By keeping your tax returns until you sell the property, you can ensure that you have the necessary documentation to support your claims and accurately calculate your gain or loss on the sale.
Keep returns until business closed.
If you own a business, you should keep your tax returns until you close the business. This is because you may need to use the information on your tax returns to calculate your final tax liability. If you do not have your tax returns, you may not be able to accurately calculate your tax liability. This could result in you paying more taxes than you owe.
Here are some additional details about keeping your tax returns until you close your business:
- Keep records of all income and expenses.
This includes receipts, invoices, and other documents that show how much money your business earned and spent. - Keep records of all assets and liabilities.
This includes a list of all the property that your business owns, as well as a list of all the debts that your business owes. - Keep copies of all tax returns.
This includes federal, state, and local tax returns. - Keep your tax returns organized.
This will make it easier for you to find the information that you need.
By keeping your tax returns until you close your business, you can ensure that you have the necessary documentation to support your claims and accurately calculate your final tax liability.
It is important to note that the IRS may be able to audit your business for up to three years after you close the business. Therefore, you should keep your tax returns for at least three years after you close your business.
FAQ
Do you have questions about how long to keep your tax returns? Here are some frequently asked questions and answers:
Question 1: How long should I keep my tax returns?
Answer 1: In general, you should keep your tax returns for at least three years. However, there are some exceptions to this rule. For example, you should keep your tax returns for six years if you claimed a loss on your return, and you should keep your tax returns indefinitely if you are under audit.
Question 2: What should I do with my tax returns after I have kept them for the required amount of time?
Answer 2: Once you have kept your tax returns for the required amount of time, you can shred them or destroy them in another way that makes them unreadable. However, you should keep digital copies of your tax returns indefinitely.
Question 3: What should I do if I lose my tax returns?
Answer 3: If you lose your tax returns, you can request a copy from the IRS. You can also get a copy of your tax returns from your tax preparer.
Question 4: How can I keep my tax returns safe?
Answer 4: There are a few things you can do to keep your tax returns safe. First, you should store them in a secure place, such as a fireproof safe. Second, you should make copies of your tax returns and store them in a different location. Third, you should consider scanning your tax returns and storing them on a computer or in the cloud.
Question 5: What should I do if I am audited by the IRS?
Answer 5: If you are audited by the IRS, you should keep all of your tax records organized and easily accessible. You should also be prepared to answer questions from the IRS auditor. You may want to consider hiring a tax professional to help you with the audit.
Question 6: How long can the IRS audit me?
Answer 6: The IRS can audit you for up to three years after you file your tax return. However, there are some exceptions to this rule. For example, the IRS can audit you for six years if you claimed a loss on your return, and the IRS can audit you indefinitely if you fraudulently filed your return.
Closing Paragraph for FAQ: I hope this FAQ has answered your questions about how long to keep your tax returns. If you have any other questions, you can consult with a tax professional.
In addition to the information in the FAQ, here are some additional tips for keeping your tax returns safe and organized:
Tips
Here are a few tips for keeping your tax returns safe and organized:
Tip 1: Use a filing system.
Create a filing system for your tax returns and other important tax documents. This will help you keep track of your returns and make it easy to find them when you need them.
Tip 2: Store your tax returns in a safe place.
Store your tax returns in a safe place, such as a fireproof safe or a locked cabinet. You should also consider making copies of your tax returns and storing them in a different location.
Tip 3: Scan your tax returns and store them digitally.
Scanning your tax returns and storing them digitally is a great way to keep them safe and organized. You can store your digital tax returns on your computer, in the cloud, or on an external hard drive.
Tip 4: Keep your tax returns for at least three years.
In general, you should keep your tax returns for at least three years. However, there are some exceptions to this rule. For example, you should keep your tax returns for six years if you claimed a loss on your return, and you should keep your tax returns indefinitely if you are under audit.
Closing Paragraph for Tips: By following these tips, you can keep your tax returns safe and organized. This will make it easy to find your returns when you need them and protect you in the event of an audit.
Conclusion: Keeping your tax returns for the right amount of time and in a safe and organized manner is important for a number of reasons. It can help you protect yourself in the event of an audit, ensure that you have the necessary documentation to support your claims, and make it easy to file your taxes in the future.
Conclusion
Summary of Main Points:
- In general, you should keep your tax returns for at least three years.
- There are some exceptions to this rule. For example, you should keep your tax returns for six years if you claimed a loss on your return, and you should keep your tax returns indefinitely if you are under audit.
- You should keep your tax returns in a safe place, such as a fireproof safe or a locked cabinet. You should also consider making copies of your tax returns and storing them in a different location.
- You can scan your tax returns and store them digitally on your computer, in the cloud, or on an external hard drive.
- Keeping your tax returns for the right amount of time and in a safe and organized manner is important for a number of reasons. It can help you protect yourself in the event of an audit, ensure that you have the necessary documentation to support your claims, and make it easy to file your taxes in the future.
Closing Message:
By following the tips in this article, you can keep your tax returns safe and organized. This will give you peace of mind and protect you in the event of an audit.