Saturday, December 18, 2010

HOW LONG SHOULD I KEEP TAX RECORDS ?

DEPENDS UPON THE TAX DATA RECORDED. SOME SUGGESTIONS ARE LISTED BELOW:

1.  DOCUMENTS THAT SUPPORT TAX DEDUCTIONS & PAYMENTS SHOULD BE KEPT UNTIL THE STATUE OF LIMITATIONS FOR THAT TAX YEAR RUNS OUT.  FOR EXAMPLE KEEP TAX YEAR 2006 DATA UNTIL 2009 i.e. 3 YEARS.

2. FOR RECORDS OF ASSETS, KEEP RECORDS AFTER DISPOSAL UNTIL THE TAX YEAR THE STATUTE OF LIMITATION EXPIRES i.e. IF A CAR IS DISPOSED OFF IN TAX YEAR 2008, KEEP ITS RECORDS UNTIL TAX YEAR 2011.

3.  IF YOU FILE A CLAIM FOR WORTHLESS SECURITIES, KEEP RECORDS FOR 7 YEARS.

4. KEEP EMPLOYMENT RECORDS FOR 4 YEARS AFTER TAX IS DUE OR PAYABLE, WHICH EVER IS LATER.

5. FOR UNREPORTED INCOME OVER 25% OF YOUR GROSS INCOME, KEEP RECORDS FOR SIX YEARS.

6. FOR  FRAUDULENT OR NOT FILED RETURNS, KEEP RECORDS INDEFINITELY.     

FOLLOW ME FOR TAX INFO   --> CALL KASH YAJNIK , AT (925) 963 4891   OR VISIT   http://www.yajnikandmehta.com/  OR BLOG: http://yma-tax-bookkeeping-payroll.blogspot.com/ OR
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