Introduction by Alice Shaffer
I have a file cabinet and a few Ziploc bags filled with bank statements, bills, receipts and who knows what else collecting dust. I came across this post over at Family Balance Sheet blog called How Long Should You Keep Financial Records?
In this post, Krista shares how she took advantage of the big snow in 2010 to clean out her office and file cabinets. This is where she explains the time line of keeping various statements, receipts and warranties etc.
here is a bit of the blog post:
Taxes – You can be audited by the IRS for up to three years after you file your return.BUT if the IRS has reason to suspect that you under reported your gross income by 25% or more, the IRS has up to six years to audit your return. AND if you fail to file or they suspect a fraudulent return, there is not time limit on the possibility of an audit.ALSO, if you are self-employed, you should keep your returns and supporting documents for six years.
to read the rest of the blog post please visit: