Storage & Shredding: Expert Advice

Tax Records: What To Keep and For How Long? Get Your Answers Now!

Posted by Arielle Burdulis on Fri, Apr 13, 2012 @ 12:31 PM

Right about now there are two types of people in the U.S., those who have done their taxes, and those who haven't. The big deadline is April 17th... a mere weekend and day away. Luckily, for both types of people, there is no deadline for figuring out what in the world to do with all of your tax and related financial documents, past and present. And thus, the question begs to be asked; how long do I need to keep all of my important tax information? And what do I need to keep?  We will start with this: three years is the golden standard for some tax documents, since that is the amount of time the IRS has to audit someone, but other documents should be kept forever, as they can come in handy in many future situations. We’ve put a table together below to help sort it all out for you…

Document Type

How long to keep it?

What to do with it?

Financial Records

(W-2’s, cancelled checks, receipts, bills, etc.)

3 years (minimum)

Securely shred after a minimum of 3 years

The tax return itself

(1040/accompanying forms, etc.)

Indefinitely

Ideally, secure storage of the hard copy documents is preferred. If that’s not an option for you, another option is to digitize the documents with a scanner and securely shred the paper documents.

Stock Purchase Receipts

(With the date and price paid for each)

Indefinitely

Secure storage or digitize and securely shred

Home Improvement Records

(To help in offsetting taxes if you ever sell your home)

Indefinitely

Secure storage or digitize and securely shred

We recommend keeping hard copy files of all of your documents until their retention time is up rather than digitizing them due to the possibility of a data breach that could lead to your digital information being stolen. Identify and credit card theft is all too common these days and any ways to reduce that possibility are always stressed and thus, the secure shredding of all of your tax and financial records once their retention time is up is necessary to keep ensuring that your information has no way of getting into the hands of a thief. The best bet for shredding is always utilizing a shredding company, brownie points if they are NAID members, who use shredders that not only tear the papers into easy to put back together strips, but pulverize the paper, turn it into pulp, and then recycle it.

Tax season already has its drawbacks, so don't let information theft be one of them... request more information on keeping your information secure by clicking any of the buttons below!

 

Green Customized Shredding Quote  Click me

 

 

(See this article for more specific information on what the above is a summary about: http://www.npr.org/blogs/alltechconsidered/2012/04/02/149714051/you-should-keep-tax-records-but-how-and-for-how-long)

 

Tags: data protection, document shredding services boston, shredding worcester, 93I, stolen identity, shredding tax information, Shredding company, 93H, tax records, document shredding services worcester, Certified document destruction, identity theft