Sunday, February 28, 2010

How Long Should You Keep Tax Records

If you can scan and store your tax return and support in cyber space, then keep them forever.
Otherwise it appears that if you file and pay your tax and none of the following situations apply, 3 years should be good.
If you did not file a tax return or filed a fraudulent tax return then there is no limit.
If you file for a claim for a loss of worthless securities or have an understatement of income of more than 25% on the tax return or file for a claim for a credit or refund after you filed your tax return, then we recommend that you keep the information for at least 10 years.

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