There are very good reasons to keep certain tax files: You may need to amend your return or maybe even — gulp — comply with an IRS audit. But even with these scenarios in mind, how long do you really need to keep those receipts, W-2s, and other tax documents? Here are guidelines for saving your previously filed tax returns and corresponding documents.
The Three-Year Rule for Paperwork
In typical filing situations, the IRS has three years to audit your return, which means you should keep your records stored for three years from the date you filed or the due date of the return — whichever is later. For example, if your tax return is due April 15, but you file early, the statute runs exactly three years after the due date. If you file late and do not have an extension, the statute of limitation applies to the three years following your filing date. You also have three years from the date you filed, or two years from the date you paid the tax, to file any additional claims or refunds. Note that filing an amended claim doesn’t restart the three-year statute of limitations.
What tax documents do I need to keep?
Generally, you should keep all records that support your taxable income, a deduction, or…
