There is no set guidance from the IRS. The IRS can audit the three previous tax years. However, Ketel Thorstenson LLP recommends you keep tax returns and supporting documents permanently. Cost basis of investments, business interests, and property is very important to maintain. Other records such as bank statements and invoices are kept for three years in case of an IRS audit. Keep employment tax records for at least four years. If you have a business we recommend you keep your records as long as needed to prove the income or deductions on a tax return.
If you have other questions about saving records or the preparation of your tax return call the Tax professionals at Ketel Thorstenson today, 605-342-5630.
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