Last week I mentioned that I would let you know what papers are needed and for how long when it comes to your tax returns.
For items concerning your income you will need these basic records: Form W-2,Form 1099,Bank Statements, Brokerage Statements, Form K-1.
For items concerning expenses : sales slips, invoices,receipts, canceled checks or other proof of payment,written communications from qualified charities.
For items concerning your home: Closing statements, purchase and sales invoices,proof of payment,insurance records, receipts for improvement costs
For investments:brokerage statements, mutual fund statements, Form 1099, Form 2439
Now how long do you have to keep these records: Guidelines to follow
If you owe additional tax then the period is 3 years
If you do not report income that you should and it is more than 25% of the gross income shown on your return the period is 6 years.
If you file a fraudulent return , it is indefinite
If you do not file a return, it is indefinite
If you file for a credit or refund after you have filed your return, it is 3 years or 2 years after you paid taxes, whichever is later
If you file a claim for a loss from worthless securities, it is 7 years
For more information on record keeping, the IRS has put together a handy publication on record keeping for Individuals. For any other questions consult your tax professional.
Now that you have done all of that, isn’t time to get rid of some of those papers? You have kept them organized by year, I am sure. So following the guidelines above shred the papers and receipts you no longer need. The Tampa Bay Professional Organizers are having a Shred A Thon on April 10,2010 at the corner of Fletcher and Dale Mabry in Carrollwood. Pro-Shred will be on hand to professionally shred all the documents and papers you no longer need. You will also be issued a certificate of shredding for your peace of mind. The event is a fund raiser for the Children’s Cancer Center with a suggested donation of $2.00 per box of papers shredded. Pro-Shred and the TampaBay Professional Organizers are donating 100% of the donations to the Children’s Cancer Center. Come on out. You’ll be able to enjoy more of our beautiful weather and not spend time in front of your personal shredding machine.