How Long Should You Keep Tax Records?

A popular client question has always been, “How long should I keep my tax returns?”  My answer is something many neither expect nor want to hear. Many tax professionals, and even the IRS, suggest discarding tax documents after a certain period of time: 3 years, 6 years, etc. after filed.  My answer is usually, “Never.” Those saying a certain number of years usually base it upon a particular IRS statute of limitations deadline.  IRS can audit a return after it’s been filed for 3 years under normal circumstances, for 6 years if there is a “substantial understatement”, and forever if there’s fraud.  Therefore, since you’re confident you’re not committing fraud, you should be safe at least after six (6) years, right? No. My thought on keeping tax documents forever has nothing to do with fraud.  First, in today’s world where almost everyone has access to a scanner and ridiculous…

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