Q: Given a passage and a query based on the passage, generate an unambiguous, concise and simple answer to the query from information in the passage. Note that the answer may not be present in exact form.
How long should I keep tax returns? In most cases, you should plan on keeping tax returns along with any supporting documents for a period of at least three years following the date you filed or the due date of your tax return, whichever is later. How to keep your records. There are no rules on how you must keep records. You can keep them on paper, digitally or as part of a software program (like book-keeping software). HMRC can charge you a penalty if your records aren't accurate, complete and readable. Lost or destroyed records. Try to get copies of as much as you can, eg ask banks for copies of statements, suppliers for duplicate invoice etc. If you may have under-reported income by 25 percent or more, then you'll need to keep tax returns and all related information for six years. When there is substantial activity from a closely held business, or the cost basis records for property or securities sold are unclear, under-reporting income is a real possibility. Still, you'd be surprised at how much you can safely discard. Here is what you should keep and how long you should keep it. Three Years. Keep your federal and state income tax returns and related receipts and statements for at least three years. Keep a 2005 tax return that includes reporting of irregular items until April 2012. So if the IRS hasn't raised any issues about your 2004 tax return by now, then it should be safe to shred and discard it. Seven Years. Keep any tax return and documentation that includes a claim for deducting worthless securities for seven years. There you have it. Check back in a few days and I'll share a few more tips on what to keep indefinitely and how to keep your records organized and safe. In some cases, you may need to hang onto your records longer than three years. For instance, you should plan on keeping tax forms for retirement accounts such as IRAs until seven years after the account is completely wiped out. If you file a claim for a loss of worthless securities or bad debt deduction, you must keep records for seven years. What tax records should I keep? You should keep every tax return and supporting forms. This includes W-2s, 1099s, expense tracking, mileage logs if you itemize and other documents. So why is keeping tax returns for three years important? Keeping tax returns for the three-year time period is tied to the IRS statute of limitations. As a result, you will need to keep your 2008 tax return and related papers until April 2012. It's generally safe to shred and discard it after that (unless a situation described below applies to you). See IRS Publication 552, Recordkeeping for Individuals, for more information. Six Years. You need to keep records if you have to send HM Revenue and Customs (HMRC) a Self Assessment tax return. You'll need your records to fill in your tax return correctly. If HMRC checks your tax return, they may ask for the documents. You must also keep records for business income and outgoings if you're self-employed. Moneywatch Spotlight. 1 6 things to avoid buying over Labor Day. 2 10 homes that will make you want to dance. 3 The 7 U.S. cities where your money will go the farthest. 4 The top 10 jobs for Americans without college degrees. 5 These are the 5 best and worst U.S. states to grow old. Query: how long do you need to keep tax records in the us
A:
you shoul dkeeping tax records for three year.