Tax returns

gidgetgh · ‎03-09-2010

Time for our yearly question. How long do you keep your tax returns?

My accountant files electronically but gives me a copy of the Federal and State returns and I have all my 1099's, charity receipts and all that.

My husband and I always kept 7 years (ok, let me rephrase that- he would have kept them till the end of time, but we kept 7 years).

Since it's time to file for 2021, this is the time I would shred our oldest return. And I am always just a little bit hesitant until the shredding is done and then I never think about it again.

So, how long do you keep your returns and all the backup?

Why is it, when I have a 50/50 guess at something, I'm always 100% wrong?

RespectLife · ‎02-27-2012

@gidgetgh

Same as you, 7 years.

Our CPA at work still sticks to that for our company...and tells me continue with the 7 yr rule.

Janey2 · ‎06-07-2010

The IRS could ask to see tax returns going back 3 years unless they can prove fraud and they can ask for 6 years back.

gizmogal · ‎05-09-2014

I keep my tax fiings 7 years. I file electronically using TurboTax and I keep a full paper copy of both Federal and State and a PDF copy. All supporting documents stay in the envelope with the tax forms.

I shred all the paper tax records of the 8th year previous, so I've just shredded 2013. Keeping the PDF copies takes up no space other than in my hard drive, so I do still have records of older tax year filings. But I find no need to keep further back than 7 years of paper.

Here is a quote from the IRS website FAQ.

Q: Can the IRS audit you after 7 years?

IRS: Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years.

Hope I've helped.

beckyb1012 · ‎03-09-2010

I actually have all of mine dating back to 2000. I divorced in 1999 and there is just something special about having all those in my name only after dumping that low-life. I am just sentimental that way. But 7 years is the correct time frame.

"Live frugally, but love extravagantly."

millieshops · ‎03-09-2010

@gidgetgh 7 years- I had more until I did a second major downsizing 2 years back.

Just earlier today, I organized my tax files. As soon as I can file the currently due form, I will sit with the file from 8 years ago and make certain it conta8ns nothing I want or need to be reminded of.

patbz · ‎03-10-2010

My Dad passed in 1999; when we were cleaning out his home we found tax returns going back to 1948! He was an electrical engineer for the Government and always went by the book and covered himself in paperwork. When my parents first retired my Mom, A teacher, was the one who had earned S.S.was not allowed to include my Dad as her dependent ( as a Fed.government employee under CSRS he never paid into S.S). 15 years later the Government changed that rule and he was allowed 1/2 her S.S. and years of back payments as well. He was so sure that this was an error that he put all of his SS in a separate account ( they'd realize their error and want it all back with interest) and never touched it for 23 years, until he passed. It was over $200,000 when he passed!

drizzellla · ‎03-14-2010

I always thought you were safe by keeping returns for 7 years.

BUT I found out that that doesn't always work out. My Dad was Administrator for his Uncle's will. My Dad's Uncle was a sucessful engineer and he invested well. When he and his wife retired they lived in Vienna for 7 years and the United States for 7 years. They traveled by taking cruises. His wife died.

On one cruise he and his wife had met a woman. She liked how comfortablely my Dad's Uncle lived. Turns out my Dad's Uncle got cancer. She flew to the United States and took him to Switerland for a "Special treatment". While he was treated in Switerland she had him sign a 5 line will. His wife's name was misspelled. And witnessed by a TV repairman.

My Dad's Uncle's original will had a Bank as a Trustee, my Dad as Administrator and his Law Firm handling a 28 page will.

So a legal battle insued for years. With many law firms and banks.

Finally The Philadelphia Orphans Court ruled in her favor.

Twenty three years later (after my Dad had died) I received a letter from the Treasury Department. After all the years of legal mess, the money value of the estate was incorrectly calculated and there was money to be distributed. They wanted me to give them the information about the lady who sued the family for my Dad's Uncle estate.

I had no informtion about her at that time. And the Trustee bank had merged with other banks many years before. Besides I didn't want "that woman" to get another penny. I told the lady at the Department of Treasury to keep the money.