In the USA, How long should one hold on to documents? Credit Card statements, bank statements, paystubs, etc?
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M$2 Answers
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For individuals:
1. "Owe additional tax and
(2), (3), and (4) do not
apply to you 3 years
2 Do not report income that
you should and it is more
than 25% of the gross
income shown on your
return 6 years
3 File a fraudulent return No limit
4 Do not file a return No limit
5 File a claim for credit or
refund after you filed
your return Later of 3 years or 2 years after tax was paid.
6 File a claim for a loss from
worthless securities 7 years"
For small businesses, including freelancers and independent contractors:
" 1.
You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
2.
You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.
3.
You file a fraudulent return; keep records indefinitely.
4.
You do not file a return; keep records indefinitely.
5.
You file a claim for credit or refund after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
6.
You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.
7.
Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later."
Sounds crazy. So, if you fudge on your taxes and know about it, keep it forever. Otherwise, I think I'll just stick with the seven year rule.
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M$
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
