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Tax Retention Guide

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), or believes there may be indication of fraud, it may go back six years in an audit. To be safe, use the following guidelines.


Business Documents You Should Keep...

Business Documents To Keep For One Year Correspondence with Customers and Vendors Duplicate Deposit Slips Purchase Orders (other than Purchasing Department copy) Receiving Sheets ...



Personal Documents You Should Keep...

Personal Documents To Keep For One Year 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...



Special Circumstances

Special Circumstances Car Records (keep until the car is sold) Credit Card Receipts (keep until verified on your statement) Insurance Policies (keep for the life of the policy) ...



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