For many people, tax time can be a stressful period, one with many more questions than answers. From worrying about whether you will get a refund or have to make a payment, to concerns about being audited by the Internal Revenue Service (IRS), tax time can be a headache.
According to a survey, more than 60 percent of US adults found tax season stressful. One of the reasons around this high level of anxiety is a sense of (how long to keep personal tax returns). For those who love to shred, keeping old papers around be a nuisance. For those who keep anything and everything, having a mountain of paperwork may not be the best strategy.
Remember, if you feel intimidated by tax preparation, you aren’t alone. And if you feel you can’t handle it by yourself, turn to an experienced, friendly tax professional who can help you get the most from your money. So, (is there any reason to keep old tax returns)? Find out more about tax returns and timeless with this handy guide.
There have been many so-called experts weighing in on this topic, but you can feel comfortable knowing the word straight from the source. The IRS says you should keep your records for three years, which is the time frame in which an audit might take place. So, if you are sitting on tax records from 2007, please feel free to shred them!
There are some exceptions regarding (how long to keep federal tax returns). The time frames can range from:
Since Oklahoma doesn’t have a specific mandate on how long to keep tax returns, following the IRS rules of three years is the suggested course of action. Some states have different rules on how long to keep tax returns, so make sure you get clarity before you shred any documents.
Business tax records operate under the same guidelines as personal tax records – three years of business operating receipts and papers should be enough. Employment tax records should be kept for four years.
If you have recently sold investments or property, you should hold on to records for at least three years. You’ll want to make sure to prove that you have already paid taxes on the contributions. Otherwise, you may get hit with a double tax when the money is withdrawn.
There is no specific information about how long the IRS keeps tax returns. However, if you need your tax return from the prior year for whatever reason, the agency will be glad to provide it to you … for a fee. At a cost of $43, you can get a full tax return for as far back as the previous seven years. You can also request a free tax transcript that redacts certain information but keeps financial information fully readable.
Tax returns and tax information are not public record. The IRS will only release tax information in very specific cases, like legal proceedings. However, some third-party tax preparers can make your information available if you inadvertently agree to consent. Read the fine print before you use any third-party service. If you are using a tax preparation firm, ask to see their privacy policy.
