April 15 has come and gone and another year of tax forms and shoeboxes full of receipts is behind us. But what should be done with those documents after your check or refund request is in the mail?
Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the "three-year law" and leads many people to believe they're safe provided they retain their documents for this period of time.
However, if the IRS believes you have significantly underreported your income (by 25 percent or more), it may go back six years in an audit. If there is any indication of fraud, or you do not file a return, no period of limitation exists.To be safe, use the following guidelines.
|Business Records To Keep...||Personal Records To Keep...|
|1 Year||1 Year|
|3 Years||3 Years|
|6 Years||6 Years|
While federal guidelines do not require you to keep tax records "forever," in many cases there will be other reasons you'll want to retain these documents indefinitely.
While it's important to keep year-end mutual fund and IRA contribution statements forever, you don't have to save monthly and quarterly statements once the year-end statement has arrived.
If you are a new business owner or if you are starting a second business, we can provide the expertise and guidance that we know small businesses need in order build a strong foundation for their future. Our firm can guide you through the process of entity selection, provide valuable tax planning advice, and help you set up your accounting systems to most easily operate your business.
We understand the challenges business owners face within the hospitality industry. Our professionals have years of experience serving this niche—providing tax and accounting services to clients that range from...read more
Our skilled professionals have years of experience in providing tax, accounting, bookkeeping, payroll and consulting services to dental practitioners. We are intimately familiar with your...read more
Our experienced team has a deep understanding of the day-to-day operations, billing routines and compliance issues of law firms, independent attorneys, and all types of legal practices. Our experienced team has...read more
Our firm is committed to helping you achieve financial success within your healthcare practice. Our skilled professionals have years of experience in providing tax, accounting and payroll services to...read more
Freidag Associates is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.
Take a moment to look around our new...