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How long do I have to keep my tax records?
me ^ | 7-24-07

Posted on 07/24/2007 11:55:11 AM PDT by LouAvul

That's the question. I've heard three years. But I've always feared they'd demand my records for four years ago.

Kind of like that tag on my mattress that says, "Do not remove under penalty of law." That thing's been on there so long it's all ragged and faded. Can't read it but I never removed it.

;)


TOPICS: Business/Economy
KEYWORDS: itdepends; taxes
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1 posted on 07/24/2007 11:55:18 AM PDT by LouAvul
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To: LouAvul

Well, it all depends on whether you’re planning to get audited or sued or not. If you’re not going to get audited or sued, you don’t need to keep any taxes.


2 posted on 07/24/2007 11:57:20 AM PDT by Alter Kaker (Gravitation is a theory, not a fact. It should be approached with an open mind...)
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To: LouAvul

I keep them for seven years but I forget why.


3 posted on 07/24/2007 12:02:14 PM PDT by freespirited (What part of Kennedy do they not understand? -- Gov. Mike Huckabee)
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To: LouAvul

Seven years, unless you get the IRS letter at 6 years and 364 days. Then, nearly forever.


4 posted on 07/24/2007 12:02:45 PM PDT by 1rudeboy
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To: LouAvul
Not exactly an answer, but just FYI:

United States law requires all new mattresses, pillows, upholstered chairs, and similar stuffed articles to be sold with a tag, the law label, describing the fabric and filling.

The tag previously read, "Do not remove under penalty of law," which caused some consumers to believe that they could be arrested for cutting it off.

The wording has since been changed to reflect that it is legal for the consumer to remove the tag from a mattress after purchase.

5 posted on 07/24/2007 12:05:08 PM PDT by CarrotAndStick (The articles posted by me needn't necessarily reflect my opinion.)
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To: CarrotAndStick

Now I find out.

After decades on the run.


6 posted on 07/24/2007 12:09:59 PM PDT by Tijeras_Slim
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To: Tijeras_Slim

Ha haha haa!


7 posted on 07/24/2007 12:14:30 PM PDT by CarrotAndStick (The articles posted by me needn't necessarily reflect my opinion.)
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To: Tijeras_Slim

Now I find out. After decades on the run .......

It’s OK now, no need to run, they took your picture off the Post Office wall a few years ago. It’s safe to go home now.


8 posted on 07/24/2007 12:16:20 PM PDT by Bringbackthedraft (Impeach Hillary 08')
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To: 1rudeboy
I thought that it used to be 7 years, but now it 4 years.
9 posted on 07/24/2007 12:28:25 PM PDT by Clara Lou (Thompson-Hunter '08-- imwithfred.com)
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To: Tijeras_Slim
Photo Sharing and Video Hosting at Photobucket
10 posted on 07/24/2007 12:33:48 PM PDT by JRios1968 (Faith is not believing that God can. It is knowing that God will. - Ben Stein)
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To: Clara Lou
That might be the time the IRS reserves itself to announce that it is auditing you. My understanding is that it can send you a Notice of Deficiency right up to the seven year deadline, and if you haven't kept records you're screwed.
11 posted on 07/24/2007 12:35:17 PM PDT by 1rudeboy
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To: 1rudeboy

Boy, am I glad I read this thread.


12 posted on 07/24/2007 12:38:47 PM PDT by Clara Lou (Thompson-Hunter '08-- imwithfred.com)
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To: LouAvul
Well, I hope a tax attorney here on FR answers, but the last thing I remember my attorney telling me on this subject was that if the IRS suspects that you are committing fraud, they can go back to the beginning of time. No limits whatsoever.

Also, the IRS does keep copies of all of your returns, but if you get audited and the IRS says you are committing fraud, you probably want not only the returns themselves but also the supporting documentation you used when you created them.

13 posted on 07/24/2007 1:27:29 PM PDT by Brujo (Quod volunt, credunt.)
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To: Brujo
It's all about the supporting documentation. If you are being audited, or worse, you can still ask the IRS to provide you with their copies of your returns.

As for tax fraud what your attorney probably meant is that, if the IRS suspects criminal behavior on your part, it can pull and inspect your records back to the dawn of time (in order to establish a pattern of behavior). But with regard to liability, penalties, jail terms, etc., the Statute of Limitations applies as it does in any non-capital case.

So in other words, the IRS lawyer is entitled to determine that you opened the Cayman Islands account in 1975, but there's a limit to how far back he or she can go for the purpose of prosecution, in the sense that the $100K you transferred in 1975 is probably untouchable.

14 posted on 07/24/2007 1:49:00 PM PDT by 1rudeboy
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To: LouAvul; 1rudeboy
This discussion prompted me to actually go look at the US Code in question.

See § 6501. Limitations on assessment and collection. There are some limits defined, but in part ”(c) Exceptions”, the first three items are False return, Willful attempt to evade tax, and No return. In each cased, there is no time limit on the IRS.

(It doesn't seem to state here who gets to declare it's a “False return” or a “Willful attempt”, but I think we all know the answer to that question. ;-)

15 posted on 07/24/2007 1:57:55 PM PDT by Brujo (Quod volunt, credunt.)
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To: Brujo

How about abolishing the IRS all together. That way, there would be no need to keep tax records. Then everybody would be happy.


16 posted on 07/24/2007 2:01:42 PM PDT by NCC-1701 (PUT AN END TO ORGANIZED CRIME. ABOLISH THE I.R.S.)
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To: LouAvul

Until the next revolution.


17 posted on 07/24/2007 6:23:07 PM PDT by elkfersupper
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To: LouAvul

Beware those crafty bastards at the I.R.S....do you dare get ride of any records???...sorry! just another psychotic taxpayer.


18 posted on 07/24/2007 9:16:52 PM PDT by AngelesCrestHighway
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To: LouAvul

How much space do the records really take?

I keep them all, and on average a whole decade still ends up less than 1” thick.

Now with electronic filing and all, I can even keep most of it on a CD. One CD will hold a life’s worth of returns and supporting documentation.


19 posted on 07/25/2007 6:09:01 AM PDT by eraser2005
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To: LouAvul
From cradle to coffin.
20 posted on 07/25/2007 6:25:54 AM PDT by 4yearlurker (If you want to be lied to ,turn on your TV!)
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