Keep your tax records for seven years if: If this is the case, the IRS can review your taxes from up to six years ago. You could have underreported your income by 25%.Keep these for at least four years after the date that the tax becomes due or is paid, whichever one is later. You filed a claim for credit or refund after your return was filed.No fraud was committed and all income was reported.Keep your tax records for three years if: Here’s how long you should keep your records, and exceptions to the three-year rule. “This is because the IRS has a longer statute of limitations for investigating those things and therefore could ask for supporting documentation beyond the standard three-year timeframe,” she says. There are some exceptions – keep documents for worthless stocks or bad debt reduction for seven years, says Nell Curtis, an accounting instructor at Milwaukee Area Technical College in Wisconsin. Tax Season Will Look Different This Year.Here’s How The Historic Child Tax Credit Will Work.The IRS recommends keeping returns and other tax documents for three years (or two years from when you paid the tax, whichever is later.) The IRS has a statute of limitations on conducting audits and it is limited to three years. In almost all cases, you can shred or throw away any documents such as W-2s, 1099s or other forms or receipts three years after you file your tax return. But you don’t need to hold on to tax documents for as long as you might think. If you’re like many Americans, you may have tax returns from a decade ago languishing in your filing cabinet.
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