8 Things to Know About Divorce and Taxes
If you’re filing for divorce, or find yourself recently divorced, it’s imperative that you understand how your changing marital status...
The following period of limitations apply per the IRS:
Keep 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.
Every tax return and supporting forms should be kept. These include 1099s, expense tracking, W-2s, and mileage logs if you itemize, and other documents.
Before you take any action, be sure that your documents are not needed by any businesses, for example, sometimes insurance companies will request copies of older tax documents. If not then it would be wise to shred the documents, as they contain sensitive information.
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