With tax season going into full swing, we wanted to remind you about the importance of keeping proper records of your tax documents. The length of time you should keep your tax documents can vary based on several factors, such as the type of document and the tax laws in your jurisdiction.

As a general rule, you should keep your tax records for at least three years from the date you filed your tax return. This includes your W-2s, 1099s, receipts, and any other records related to your income and expenses. If you have filed a claim for a tax refund, you should keep your records for at least three years from the date the return was filed or two years from the date the tax was paid, whichever is later.

However, if you have underreported your income by more than 25% or if the IRS suspects fraud, the statute of limitations for audit can be extended to six years. In some cases, it may be necessary to keep your records for even longer, such as if you have a rental property or own a business. In these cases, it is recommended that you keep your records for seven years.

It is important to note that electronic records can also be used as proof of your tax liability in case of an audit. Therefore, it is recommended that you keep electronic copies of your tax documents in addition to physical copies.

We hope that this information helps you properly manage your tax records. If you have any questions or concerns, please do not hesitate to reach out to us. We are here to assist you in any way we can.

About the Author nextstepokc


He empowers service providers to pursue their purpose, monetize their passion, and plan their profits with the Master Business Blueprint.

He is the owner of Next Step Bookkeeping & Tax, and his Christian Business Coaching website can be found at BrotherJuan.me. He holds a Bachelor's in Business/Management, a Master's in Accounting and Financial Management, a Doctorate in Ministry (Biblical Counseling), and is a Certified Christian Business Coach and Consultant.

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