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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10142
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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How long should one keep receipts backing up an income tax

Customer Question

How long should one keep receipts backing up an income tax entry?
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.
Hi,...Generally the requirement is three years ... If you believe there is any chance that IRS might claim fraudulent reporting the best practice is to keep then for seven years....Hang on and I'll get the IRS guidance for you
Expert:  Lane replied 8 months ago.
" Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.Period of Limitations that apply to income tax returnsKeep records for 3 years if situations (4), (5), and (6) below do not apply to you.Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.Keep records indefinitely if you do not file a return.Keep records indefinitely if you file a fraudulent return.Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later."
Expert:  Lane replied 8 months ago.
You'll find all that and more here: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-long-should-I-keep-records...
Expert:  Lane replied 8 months ago.
I hope this has helped....Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit That’s the only way JustAnswer will credit us for the work here....Thank you!Lane……I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.