Tax documents tell the story of your life over the past year: what you made, spent, and invested. Completing returns can be complex and may require a significant amount of information. As a result:
- You may be unsure which documents you need to keep from year to year.
- You may not have space for all of the documents you think you need to keep, or you may just want to get rid of old, out-of-date records.
Confidential Data Destruction Company offers some general advice about storing and shredding tax documents. For information specific to your situation, we recommend contacting your accountant or the proper government tax agency.
Guidelines for Ventura Families for Shredding at Tax Time
Consider treating these two categories of documents differently when it comes to what you keep and what you destroy.
Federal and State Income Tax Filings
Opinions vary, but many accounting professionals recommend that you keep your federal and state income tax filings for three-to-seven years. Other accountants say you should hang on to them forever.
You might want to stay conservative and just keep these filings around. They typically aren’t extensive or bulky, and having them on-hand provides you additional security in case the IRS performs an audit. Past filings are also helpful for preparing future returns.
Supporting Documentation for Your Tax Filings
In general, you need to keep records that support an income or deduction on your tax return until the “period of limitations” for that return runs out. This period is the time in which you can amend your tax return or the IRS can assess additional tax. Many Ventura accountants suggest that you keep supporting documentation for that same three-to-seven year period after filing tax returns.
Property and items that have depreciation, amortization, or depletion are special cases. So are documents that you might need for insurance. You may want to retain these documents for longer because they can affect your filings for years to come.
Other Documents to Consider Shredding at Tax Time
Filing tax returns has a few advantages. One of them is the opportunity to review paperwork that you may have collected over the past 12 months and to get rid of documents you simply don’t need anymore.
For example, you may not require old credit card bills and investment statements once you’ve reconciled them with your filing. You also may not need paper versions of documents you can scan, access, or save in electronic format.
Whether your documents are tax-related or contain sensitive data about you and your family, Confidential Data Destruction Company can quickly, efficiently, and securely destroy these papers. Explore our periodic purge or scheduled services online, and get in touch today to schedule a pick-up.
Contact Confidential Data Destruction Company in Ventura. Shredding at tax time is important for your safety and we can help. Call (805) 232-9799.