How long should we keep tax records?
By sunilkonda
@sunilkonda (1215)
India
October 2, 2008 11:59pm CST
Not everyone wants or like to keep unneccessary documentation.How long do we have to keep our tax records and what records do we have to keep? Do we have to hold on to years of gas and telephone bills? What about food purchases from our local supermarket? As taxpayers, we are legally required to keep accurate books and records in the event the Internal Revenue Service ever decides to audit our tax returns.What is your opinion about this and how do you keep records?
1 person likes this
4 responses
@sharra1 (6340)
• Australia
3 Oct 08
Not sure about your country but in mine it at least 10 years as they may choose to audit you at any time. I have kept all my tax records going back years because you just never know.
Bills I keep for a few years, food purchases and other purchases yes as I check them off on my credit card and I keep bank records as long as tax records. If I paid cash for something I do not usually keep the receipts.
@sedel1027 (17846)
• Cupertino, California
3 Oct 08
You are suppose to hold on to all tax records for 7 years. My dad always held onto his for 13. You should keep an electronic backup of all work if you don't keep the paper copies.
1 person likes this
@danishcanadian (28954)
• Canada
25 Nov 09
I think here in Canada we need to keep our old tax returns for the next five years. I have them on paper from the accountant, and I also have them on the computer, because my accountant always sends them to me via e-mail in PDF format.
@moonchild1au (6237)
• Australia
27 Nov 09
I guess it would depend on which country you live in but here in Australia, we only keep them for 5 years - if you get audited, they won't go back any further... So for this year, you can get rid of your 2003-2004 return...The Aussie tax year goes from July 1 - June 30.
