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Post by dailystruggle on Jan 20, 2010 12:57:45 GMT -5
Okay, this doesn't exactly answer your question, but the IRS does have it stated for how long you should keep paperwork. I was reading the Form 1040 directions about how to fill out the tax papers. It's at the very end of the 100 page PDF file. The statute of limitation for the IRS to be able to audit you is three years from the time you filed the taxes, or 2 years from the time that you paid. So, they can only go back and audit you over the 2006 and 2007 tax years. Now, the problem is that if the 2006 tax year is unclear, they can file for the ability to look into past years. That's why they say to keep documentation for 7 years.
Another tidbit. For utility bills, it lists on the bill whether you have a "past due" amount. At least it does on mine, so I only keep the current month.
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Post by CourageouslyLion SeeksSerenity on Feb 25, 2010 17:46:13 GMT -5
Okay, this doesn't exactly answer your question, but the IRS does have it stated for how long you should keep paperwork. I was reading the Form 1040 directions about how to fill out the tax papers. It's at the very end of the 100 page PDF file. The statute of limitation for the IRS to be able to audit you is three years from the time you filed the taxes, or 2 years from the time that you paid. So, they can only go back and audit you over the 2006 and 2007 tax years. Now, the problem is that if the 2006 tax year is unclear, they can file for the ability to look into past years. That's why they say to keep documentation for 7 years. This is INCOMPLETE information. Yes it's three years for an audit. BUT ... the IRS can go back TEN years for collecting back taxes. So you need to keep IRS paperwork for TEN years. (including any INCOME records -- any type of taxable income, including from a job, a rental property, bank interest, investments, prize money, etc.) Also, NOTE that some states have their own income tax, and each state has different rules on that. Research your own state's rules. -
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