After your business taxes are prepared and submitted, you may want to forget about them. However, federal statutes require that taxpayers keep copies of tax returns and supporting information for three years. This mandate is referred to as the three-year law. However, do not believe you are safe by tossing away many of your records after three years.
If you speak to a tax preparer in Queens, he or she will normally recommend that you keep your business or personal records for one year, three years, six years, or indefinitely. It just depends on the type of paperwork.
One-Year Records
Normally, a tax preparer will not need to refer to the following after a year:
* Purchase orders
* Duplicate deposits slips
* Customer or vendor correspondence
* Receiving documents
* Stenographer notes
* Requisitions
* Withdrawal forms for stockrooms
However, it is advisable to keep some of the following papers on hand for three years so they can be referenced, if necessary, by a tax preparer:
* Employment applications
* Expired insurance policies
* General business correspondence
* Audit reports
* Internal reports
* Vouchers for petty cash
* Inventory tags
* Time cards
Records That Should Be Maintained for Six Years
Any tax forms where you owe a good deal of money should not be tossed aside after three years’ time. You should also hold onto business documents, such as claims for accident reports, accounts payable and receivable ledgers, canceled checks, and bank statements and reconciliations for six years. It is better to be safe than sorry where business record keeping is concerned.
Never Throw These Records Away
Items that a tax preparer suggests be kept indefinitely include audit reports, canceled checks for tax payments, deeds, depreciation schedules, year-end financial statements, minute books for directors and shareholders, and property appraisals.
Where to Learn More about Record Maintenance Online
If you want to know more about record keeping and filing, visit website domain online. You can find out precisely what documents should be maintained and the length of time they should be kept.
