24 Nov I hear so many different reports on maintaining tax and sales records. How long do I have to maintain my tax records? My Real Estate sales? So far I’ve been saving EVERYTHING for 7 years and I think its too long.
WE RECOMMEND THAT YOU CHECK WITH YOUR OWN INDIVIDUAL TAX ADVISOR PLEASEnnSome tax related time frames, such as your tax return filing deadline or the due date to pay the IRS estimated tax payments, are clear-cut. But when it comes to tax records and how long to keep tax records, the answer is far from simple. nnTax records such as receipts, canceled checks, and other documents that prove to the IRS an item of income or a tax deduction appearing on your tax return should be kept until the statute of limitations expires for that tax return. Usually this is three years from the date the tax return was due or tax return was filed with the IRS, or two years from the date the tax was paid to the IRS, whichever is later. This is the time period in which the IRS can question your tax return – typically three years after it is filed. There is no statute of limitations when a tax return is false or fraudulent or when no tax return is filed with the IRS. You should keep some tax records indefinitely, such as tax records relating to property, since you may need those tax records to prove to the IRS the amount of gain or loss if the property is sold. nnWE RECOMMEND THAT YOU CHECK WITH YOUR OWN INDIVIDUAL TAX ADVISOR PLEASE