Posted on 10/21/2017 2:24:37 PM PDT by Cementjungle
Just curious if anyone has a good answer as to how long to keep tax records (and supporting documents) for a deceased parent.
Even my accountant doesn't really have an exact answer... lots of "well, if she was suspected of tax fraud then longer...".
My MIL died in 2011. We filed the estate tax stuff within the timeframe, and it got selected for an audit in 2013. We went through that and everything was settled without much fuss in 2014.
We're looking to move again, and I want to shed more paperwork. We have tons of her paperwork going back to around 1998 (taxes, receipts, bank statements, credit card statements, etc.).
Does anyone have a good idea on how much of this junk we can shed?
Have a bonfire.
I would assume if the estate was settled then there is nothing more the state can do. Also I checked and the IRS has 6 years to audit you from the date of filing.
Usually.
If she had a simple estate then they should be done. If she had a tendency to make generous gifts to her heirs before her death you might be hit again.
Years ago, our CPA said to hold things for seven years and later changed it to five years. I did go through checks and bank statements and kept the ones relevant to IRS and state taxes paid as well as checks to contractors, etc., which added value to our house. That way the capital gain for our sale price over our investment is lessened by the proof of the improvements we made. The maintenance, charitable, and medical I threw out. But be careful about deeds and titles, including burial plots, as some people throw them out not knowing what they are.
On the advice of my accountant I kept my parents records for 10 years.
They died in AZ and that was his best legal advice. No biggie for me.
My MIL died of Breast Cancer in 1990, and my wife was compelled a number of years ago to seek the similar information as yourself. MIL was a tax preparer, and had many documents as you can imagine of which we stored for many years.
We contacted one of MIL’s old tax associates to ask her what to do, and how long to keep the stored documentation personal as well as business. Her answer was a BIG “I don’t really know, but.....”.
The “but” consisted of keeping the papers at least ten years, and then tossing them.
That’s what we did.
If anyone comes looking for deceased parent’s records, I’ll direct them to my deceased parents when that time comes.
Ain’t none of my business.
Tax records are one of the most interesting ancestry items. Scam them to pdf and add them to the family photos.
The estate was fairly involved unfortunately. We did however sell her house before the audit, so there shouldn't be any further issues with the valuation of that.
Her will created a business (LLC) which is tasked with selling her life's artworks (some 2,000+ pieces)... so we're of course keeping everything related to her works. We forever need to refer back to the estate valuation of each work whenever we sell a piece in order to report the gain/loss.
But... all this crap from her personal returns from years past is what I want to toss where possible. She kept friggin' everything... housekeeper schedules/records, dry cleaning receipts, meal receipts, bank/credit card/investment statements, cancelled checks, travel expenses, etc. The paperwork adds up!
Most of her personal stuff (correspondence, speeches, writings, and anything pertaining to her career) is off at archives at the Smithsonian (pre-1995) and UCLA (1996-2011).
My wife was an only child, and her daughter is already beyond child bearing years (and has no kids). So, there's no one in the pipeline who will have any interest in any of that ancestry stuff.
The Feds sent a letter after my father passed away in 1978.
I responded and sent them his new address including the cemetery address, plot # and grave location.
Crickets
ping
Yep, shred & destroy.
Tell the IRS where they can find her if they’d like to interview her.
I plan on being pro-active and leave a forwarding address for when I expire and ANYONE that wants to find me need not bother my children.
Three years. Since your mother is deceased, she can’t commit fraud.
I had to deal with this.
The assholes at the IRS will scrutinize those three years.
Good luck.
5.56mm
U might wanna save signature page & page 1. Proves they filed. Maybe go back 20 years
Bookmark
There might be a service that digitizes everything.
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