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Make tax time easier by
organizing now |
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 Good
record keeping is a crucial way to make
your life easier – and reduce your
stress level – when tax time rolls
around. The Internal Revenue Service
(IRS) is reminding taxpayers that this
time of year is a great time to start
planning for tax season by getting your
records in good order. Maintaining a
proper record of important documents –
and keeping those documents organized –
will help ensure all of your tax
information is as accurate as possible.
It also ensures that you’ll be able to
answer questions if your return is
selected for examination or prepare a
response if you receive an IRS notice.
Generally speaking, the IRS recommends
keeping any and all documents that may
have an impact on your federal tax
return. According to the IRS, individual
taxpayers should usually keep the
following records supporting items on
their tax returns for at least three
years:
- Bills
- Credit card and other receipts
- Invoices
- Mileage logs
- Canceled, imaged or substitute checks
or any other proof of payment
- Any other records to support
deductions or credits you claim on your
return
You should normally keep records
relating to property until at least
three years after you sell or otherwise
dispose of the property. Examples
include:
- A home purchase or improvement
- Stocks and other investments
- Individual Retirement Arrangement
transactions
- Rental property records
If you are a small business owner, you
must keep all your employment tax
records for at least four years after
the tax becomes due or is paid,
whichever is later. Examples of
important documents business owners
should keep include:
- Gross receipts: Cash register tapes,
bank deposit slips, receipt books,
invoices, credit card charge slips and
Forms 1099-MISC
- Proof of purchases: Canceled checks,
cash register tape receipts, credit card
sales slips and invoices
- Expense documents: Canceled checks,
cash register tapes, account statements,
credit card sales slips, invoices and
petty cash slips for small cash payments
Documents to verify your assets:
Purchase and sales invoices, real estate
closing statements and canceled checks
For more information about
recordkeeping, check out IRS
Publications 552, Recordkeeping for
Individuals; 583, Starting a Business
and Keeping Records; and Publication
463, Travel, Entertainment, Gift, and
Car Expenses. These publications are
available by
click here
or by calling 800-TAX-FORM
(800-829-3676).
Note: This information is provided by
the Iowa Bankers Association (IBA) based
on information available from the
Internal Revenue Service (IRS). The
information is not intended as legal or
tax advice, and readers should consult a
tax professional or the IRS with
specific questions. For more tax
information from the IRS, visit
www.IRS.gov.
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