Over the years, many homes become cluttered with all kinds of stuff. This includes unused housewarming gifts.
Also, it consists of piles of magazines you’ll get around to reading one day. Additionally, there are the boxes of clothes you’re determined to fit into again.
Thus, if you’re like most people, you probably have boxes upon boxes of tax documents. You find you’re hanging onto for…you have no idea how long.
If you also run a business, you’re probably facing the same issue. Undoubtedly, you’re aware that there’s a statute of limitations.
It must be met before you can engage in document destruction. Yet, how long is it? Also, does it differ for personal and professional tax filings?
Additionally, is it ever safe to hand over your tax documents to a document shredding service for disposal? Here are a few things you should know.
How Long to Wait
Perhaps, you’ve heard you must save tax records for three years. However, the IRS has strict guidelines. Hence, you’re required to retain tax records for a minimum of three years from the filing date.
Then, hand them off to your Florida document shredding service. This is especially important if you receive a credit or refund from your return.
However, don’t fail to report applicable income. Perhaps, it amounts to more than 25% of the gross income reported on your return.
In that case, the IRS has up to six years to come after your business. In addition, both individuals and businesses are advised to keep tax documents for seven years.
This applies to returns that include deductions for bad debt or worthless securities. If you’re not sure, it’s always best to err on the side of caution.
Therefore, keep tax documents for up to seven years. Maybe, you fail to file a tax return or you file a fraudulent return.
In doing so, you’ll need tax documents to prove earnings, expenditures, etc. Consequently, it’s imperative that you keep files indefinitely.
After all, you’re required to provide proof. Hopefully, this won’t happen even by accident. However, the burden is on you to prove your position.
Most likely, you wonder why you’d deliver tax documents to your mobile document shredding service. Really, isn’t it safer to keep them? The answer is no.
For one thing, they will take up a lot of space. In addition, they present a security risk. Therefore, it’s best to hang onto your tax documents for the prescribed length of time.
After that, dispose of them properly. In doing so, you’ll reduce the risk of theft.