What to shred and what to keep (old taxes)

[Montecfo]

I have kept all my tax returns and support, paper copies. I also have electronic copies of the recent ones.

Generally, it serves no purpose to keep them that long. But I also do not have a big reason to get rid of them. They do not take up a bunch of space.

Next move I would probably dump the ones beyond 7 years.

 

[Winemaker]

I have kept all 1040s, W2s and all paperwork from 1972 when I first started working.

Has it paid off? It certainly has. When DW filed for retirement and pension benefits, 7 years of records were missing. When confronted, she was told that all records from 1979 to 1994 were destroyed, that she was never an employee and/or copied electronically. Only they can't find the records. Fast forward 1 month when DW traveled back to old employers, with copies of W2s and paystubs in hand. They suddenly found their 7 years and 2 months of past records, which we were able to convert and add to the stash.

 

[MichaelB]

The IRS has 6 years to challenge a tax return, and there is a risk to keeping tax returns past this time. If records still exist they can be used as evidence. If the records were destroyed based on record keeping requirements, once the 3 and 6 year limitations have been met, the IRS has to meet a much higher standard to pursue a case. Keeping the records is to the benefit of the IRS.

The IRS cannot easily accuse someone of not filing decades ago. If they were to bring such a case, because of the amount of time passed, it would need to be tax fraud. Too much time has passed for a simple case of “we have no record you filed, but we have proof of tax liability”.

 

[samclem]

I've got paper returns, input documents, and my year- end account statements going back to the first year I filed. Maybe 2 file drawers. It doesn't take up much room, requires no maintenance, and this, plus some spiral bound notebooks, are my only finances/"what was I thinking?" data trail.
I have referred to them a few times, it is easier to keep it than to destroy it.

 

[ocean view]

Do you have a source to support your statements?

The IRS cannot easily accuse someone of not filing decades ago. If they were to bring such a case, because of the amount of time passed, it would need to be tax fraud. Too much time has passed for a simple case of “we have no record you filed, but we have proof of tax liability”.

see my bolding on the last bullet point. I believe the IRS views intentional failure to file as tax fraud. The advice I learned from my college professors was once you start to file Fed tax returns, never stop, even if you owe no tax for a particular year.

https://www.irs.gov/taxtopics/tc153

Topic Number 153 - What to Do if You Haven't Filed Your Tax Return

You haven't filed your federal income tax return for this year or previous years. Regardless of your reason for not filing a required return, file your tax return as soon as possible. If you need help, check our website. We have many tools and resources available, such as the Interactive Tax Assistant (ITA), FAQs, and Tax Trails.
If you're not sure whether you're required to file a return, visit Do I Need to File a Tax Return or refer to Publication 17, Your Federal Income Tax for Individuals. If you're required to file and owe a balance, but you can't pay all of the tax due on your return, the IRS may be able to help you establish a payment agreement. For additional information on tax payment options, refer to Topic No. 202.
If your return wasn't filed by the due date (including extensions of time to file):

• You may be subject to the failure-to-file penalty, unless you have reasonable cause for your failure to file timely.
• Tax not paid in full by the original due date of the return (regardless of extensions of time to file) may also result in the failure-to-pay penalty, unless you have reasonable cause for your failure to pay timely, or the IRS has approved your application Form 1127.pdf, Application for Extension of Time for Payment of Tax Due to Undue Hardship).
• Interest is charged on taxes not paid by the due date, even if you have an extension of time to file, and is also charged on penalties.
• There's no penalty for failure to file if you're due a refund. However, you risk losing a refund altogether if you file a return or otherwise claim a refund after the statute of limitations has expired. An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances. After the expiration of the three-year period, the refund statute prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid. However, the statute of limitations for the IRS to assess and collect any outstanding balances doesn't start until a return has been filed. In other words, there's no statute of limitations for assessing and collecting the tax if no return has been filed.

 

[gayl]

Ok. Bumping this. I cannot find my 2014 return. I know I did it. But I cannot find it. I can find the refund deposit from both IRS & FTB but I've lost the paperwork. [emoji853]

 

[RunningBum]

Ok. Bumping this. I cannot find my 2014 return. I know I did it. But I cannot find it. I can find the refund deposit from both IRS & FTB but I've lost the paperwork. [emoji853]

Chances are very very good you won't need it.

 

[aja8888]

Ok. Bumping this. I cannot find my 2014 return. I know I did it. But I cannot find it. I can find the refund deposit from both IRS & FTB but I've lost the paperwork. [emoji853]

IRS will send you a copy. It cost a few dollars. Go on their website and look for a link to request a paper copy. I have done this before.

 

[gayl]

I'm only concerned bc my employer that year left 300 employees holding the bag so to speak as he failed to pay our withholdings. Reported to us that he was paying but just didn't send them the check. Took a few months to get IRS / SSA records straightened out but I managed. I'm hoping either IRS or SSA kept the info --- will request my return. Hopefully it shows a refund instead of the tax due that they initially said I owed

 

[aja8888]

I'm only concerned bc my employer that year left 300 employees holding the bag so to speak as he failed to pay our withholdings. Reported to us that he was paying but just didn't send them the check. Took a few months to get IRS / SSA records straightened out but I managed. I'm hoping either IRS or SSA kept the info --- will request my return. Hopefully it shows a refund instead of the tax due that they initially said I owed

The IRS will give you a copy of what you sent in.

 

[calmloki]

The gal draws together all paper receipts and documents for all spending and lending and payments and medical and rental paperwork each year at tax time. Roughly a two foot deep solid stack of paper. Each year it goes up into a large upper floor hidden closet supported by a 3x18 gluelam beam. We've been in this house about 19 years and I don't know how many years worth of boxed records we moved in. At this point the early records and other mystery boxes are piled about 12 feet back in the triangle closet. No way I'm digging them out. Figure we are protected against tornadoes lifting the house Wizard of Oz style. Some chance it will all collapse on us - kind of the opposite of being hoisted by our own petard. No shredding here - the gal likes hard copy forever.