Cleaning Up: A fresh new year is upon us. This is a great time to go through all of your Tax Records and weed out everything that’s unneeded. To be honest, the IRS does not require you to keep your records in any particular order, but you should keep any document that could have an impact on your tax returns.
Confusion: Many people ask, "How long should I keep my tax records?" It's not fun to have loads of paperwork weighing you down, but keeping your paperwork is important. If the IRS decides to take any kind of action against you, how will you defend yourself without ample documentation?
The Keepers: This is the IRS’s official list of definite “Keeps.”
• Credit card and other receipts
• Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return
Start off Right: If you keep your records straight through the year you’ll save time and effort when tax time rolls around. If you hire a professional to complete your return, having your records in order will help them quickly and accurately get the best results possible. Don’t wait until next year to set things right, get organized now!
Now You Have the Smoking Gun...Use it!