You are wondering how much of the stuff in your file drawers you can clean out, throw away or shred. Year-end is a good time to clear out the old to get ready for the new. Spend some time setting up your system for keeping valuable tax and financial records.
Generally, the IRS recommends keeping copies of tax returns and supporting documents at least three years. Some documents should be kept up to seven years in case questions arise. Keep records relating to real estate up to seven years after disposing of the property. You need both the purchase documents and the sales documents.
Here are some tips:
Taxpayers who need tax information can request a free transcript for the past three tax years. The ‘Get Transcript’ tool on IRS.gov is the fastest way to get a transcript.
Be very careful where you store and how you secure your information. Keep tax, financial and health records safe and secure whether stored on paper or kept electronically. When records are no longer needed for tax purposes, ensure the data is properly destroyed to prevent the information from being used by identity thieves.
When it comes to personal or business accounting services and tax preparation there’s nothing that brings more peace of mind and confidence, and nothing that helps you focus on the big picture, than knowing that your bottom line is on target and on time.
Working with a certified public accountant (CPA) who takes the time to understand the way you live your life and run your business, and invests in educating you so you can make informed decisions, will ensure that your bottom line is not only on target and on time but that it moves you along the road to your success and your goals.
That’s exactly how Sherwood Tax & Accounting approaches every client relationship. Sherwood Tax & Accounting understands that your dreams and goals are unique and that a pre-programmed, one-size-fits-all approach won’t provide the best outcome for you.
When you work with Sherwood Tax & Accounting, you’ll experience something very different. You’ll be working with a partner who goes well beyond simply crunching numbers and filing returns. Sherwood Tax & Accounting will provide you with a clear picture of your financial position and the knowledge you need to make decisions that will move you toward your goals.