e-tax matters

Many times we are asked the question of how long to keep records. Being a complex world, there is no simple answer. It consists of using your own judgement along with federal and state statutes. Generally, federal income tax returns can be audited for up to 3 years after filing, up to 6 years if criminal fraud is suspected and permanently if civil fraud is suspected. If a tax return is not filed, these statutes of limitations do not begin to run.

We have, however, come up with some guidelines. If you keep your records electronically, instead of paper, the guidelines are the same.

Record

Retention Period

Tax returns

Permanent

W-2's

1099's

Cancelled checks:

Bank deposit tickets

Bank statements

Charitable contribution receipts and documents

Credit card receipts:

Receipts, diaries, logs related to tax return

Investment buy and sell confirmations

Dividend reinvestment records

Year end brokerage statements

Mutual fund annual statements

Investment property purchase documents

Home purchase documents

Home improvements receipts and cancelled checks

Retirement plan annual reports

IRA annual reports

Divorce documents

Loans

Estate planning documents