| The tax filing season is just around the
corner, so if you haven’t already done so, it’s time to organize your records.
Whether you are a business owner or an individual taxpayer,
you can avoid headaches at tax time with good records because they will help you remember
transactions you made during the year.
Keeping well-organized records also ensures you can answer
questions if your return is selected for examination or prepare a response if you are
billed for additional tax. In most cases, the IRS does not require you to keep records in
any special manner. Generally speaking, you should keep any and all documents that may
have an impact on your federal tax return.
Small Business Owners
If you are a small business owner, you must keep all your
employment tax records for at least four years after the tax becomes due or is paid,
whichever is later. Examples of important documents business owners should keep Include:
- Gross receipts: Cash register tapes, bank deposit slips,
receipt books, invoices, credit card charge slips and Forms 1099-MISC
- Proof of purchases: Canceled checks, cash register tape
receipts, credit card sales slips and invoices
- Expense documents: Canceled checks, cash register tapes,
account statements, credit card sales slips, invoices and petty cash slips for small cash
payments
- Documents to verify your assets: Purchase and sales
invoices, real estate closing statements and canceled checks
Individuals
Individual taxpayers should usually keep the following
records supporting items on their tax returns for at least three years:
- Bills
- Credit card and other receipts
- Invoices
- Mileage logs
- Canceled, imaged or substitute checks or any other proof of
payment
- Any other records to support deductions or credits you claim
on your return
For more information about record-keeping, check out IRS
Publications:
These publications are available on the IRS Web site,
IRS.gov or by calling 800-TAX-FORM (800-829-3676). |
|
|
Source: John Berger, SB/SE C&L,
External Outreach Branch, Room 940, Fallon Federal Building, Baltimore, MD 21012, Tel:
410-962-9025, Fax: 410-96202572,
To get the latest IRS news and products and services subscribe to our FREE e-News on
IRS.gov at http://www.irs.gov/businesses/small/article/0,,id=154825,00.html,
click “Subscribe Now” at the bottom of the page and enter your e-mail
address. |
|
