Why do I have to keep my tax documents?
You might know the answer to this question already, but this is an important topic so it’s worth discussing—just in case. Your taxes provide important information about your finances including the sources of your income, deductible expenses, and payments made to employees and the IRS. In the event of the dreaded tax audit, you will have to swiftly provide necessary information contained in previous tax documents.
How long should I keep my tax documents?
The short answer? Forever. Although the IRS lays out some basics, most savvy business professionals recommend keeping all tax documents indefinitely. The old adage is true: better safe than sorry. If you’re willing to take the risk, then here are the general time-frames for you to consider:
- 3 years from the date your taxes were filed or 2 years from the date you paid the tax—whichever comes later—if you file a claim for credit or refund.
- 7 years if you file a claim for loss due to bad debt deduction or worthless securities.
- 6 years if you do not report income that you should report exceeding 25% of the gross income shown on your return.
- Keep all records indefinitely if you file a fraudulent return.
- Keep all records indefinitely if you do not file a return.
- Keep employment tax records for at least 4 years after the date the tax becomes due or is paid—whichever is later.
What is the best way to preserve my records?
To keep your tax documents safe from damage, loss, and theft that could result in identity fraud, your best bet is to find reliable commercial storage. A quality storage company will provide you with a climate-controlled space that is secure and accessed conveniently.
How do I find a reliable storage company?
Morgan Manhattan is an NYC based storage company that offers high-tech solutions at a fair price. We provide small to medium-sized companies with convenient and ultra-secure records management complete with computerized access, easy retrieval, and convenient delivery options. Best of all, we are strongly dedicated to providing the best customer experience possible, catering our solutions to your specific needs.
The take away?
Keeping good tax records is important, but the process can be difficult and dangerous when handled improperly. When you need a document storage solution that makes tax season less stressful while providing the safe and affordable records management solution you need, go with Morgan Manhattan!