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Do you really only keep 7 years tax returns?
01-10-2021, 10:51 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Aug 2017
Posts: 2,105
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Do you really only keep 7 years tax returns?
I was on a shredding binge today where I found that apparently I never do any . . . Had the purchase papers from a car I bought in 1995. . . .
Taxes are next. . . Do I really only need 7 years? Do I ditch the 1099s then too? I probably have at least 20 years. . . Somehow they are hardest of the papers to get rid of.
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01-10-2021, 11:11 PM
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#2
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Full time employment: Posting here.
Join Date: Jan 2008
Posts: 759
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__________________
Retired July 2013 at age 49.
Lazy Portfolio Investor:
AA: 55% Stocks
35% Bonds
10% Cash
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01-10-2021, 11:11 PM
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#3
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Recycles dryer sheets
Join Date: Oct 2019
Location: Los Angeles
Posts: 82
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in the first half of the 2000s I moved 10 times in ten years and no paperwork ever made the move with me. I've now been in my current place seven years and I don't have any receipts, 1099s, tax returns etc., older than three years. But to be fair I live by myself and no kids nor have complicated taxes so being audited is not something I worry about.
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01-10-2021, 11:17 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Switzerland
Posts: 1,047
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Given the power of the IRS, I keep all of my tax returns (at least starting the last two decades). I see it as an almost existential risk not to do so. I'm not saying that I have any problems...I am in fact squeaky clean...I just worry about being defenseless if something ever came up and a false assertion were made. It's just space in our building's basement storage area.
-BB
__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
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01-10-2021, 11:23 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 2,024
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Everything back to 1982. I've seen what the government can do when it decides to not play nice. Having security clearances for 30 years and seeing the back workings of government was an additional eye-opener for sure.
Two mail audits, both ending in our favor.
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01-10-2021, 11:24 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Sep 2011
Location: Placerville
Posts: 1,788
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I never keep hard copies since doing taxes via software.
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01-10-2021, 11:26 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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I shredded all but seven a while ago. But I don't remember when that was. Probably after I retired. I'm sure I can start lighting the fireplace with a few years worth.
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01-10-2021, 11:40 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2016
Location: SoCal
Posts: 1,293
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I have mine all the way back to '79.
Never been audited because I'm a rule follower not a rule breaker.
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01-11-2021, 12:38 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 2,871
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I have scanned copies of all my returns and supporting docs for 20+ years. No reason not to keep them since they don’t take any physical space.
__________________
Eat, Drink and Be Merry.
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01-11-2021, 01:20 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Aug 2011
Posts: 3,600
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Gosh no. Especially if you own any type of property that has tax consequences (ie IRA's, real estate etc).
The IRS says that you need to keep your records until you have disposed of the property -- even if it is more than 7 years.
-gauss
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01-11-2021, 01:32 AM
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#11
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,871
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Can't recall the last time I got rid of any old tax returns. I hope I never need them, but, you never know. YMMV
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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01-11-2021, 01:45 AM
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#12
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,498
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 Quote:
Originally Posted by RobbieB
I shredded all but seven a while ago. But I don't remember when that was. Probably after I retired. I'm sure I can start lighting the fireplace with a few years worth.
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+1
I got fed up and shredded all but seven a few years ago. I am sure there are reasons why I shouldn't have done that, but at that particular moment I didn't actually care.
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01-11-2021, 02:53 AM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,582
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I have all mine I ever filed. But all you really need is 7 years, plus records to support the basis in real estate owned, any IRAs you have basis in, and needed support for future HSA withdrawals.
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01-11-2021, 03:15 AM
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#14
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,591
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I have scanned pdf's of all of my tax returns since 1979.
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01-11-2021, 03:21 AM
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#15
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,138
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Yes, I recently shredded all but last 7 years. Only some old IRA basis forms remain.
Real property records are different. I keep those showing basis for house, etc.
I have annual brokerage statements going back many years. Fortunately these are electronic now so don’t take additional space.
__________________
Retired since summer 1999.
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01-11-2021, 03:55 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
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I thought the IRS can only audit you within 3 years?
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01-11-2021, 04:19 AM
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#17
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,340
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I keep them all as PDFs (with multiple backups). I scan all associated paperwork and file those PDFs with the return, one folder for each year. Every piece of paper goes through the shredder. It's trivial to print those old PDFs if I need to, so why bother keeping the originals?
__________________
I thought growing old would take longer.
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01-11-2021, 05:03 AM
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#18
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,711
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Hard copies - 10 years.
Soft copies - forever.
Found a container with 2000-2004 financial data and taxes for in-laws. Just shredded.
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01-11-2021, 05:06 AM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,138
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Quote:
Originally Posted by teejayevans
I thought the IRS can only audit you within 3 years?
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Yes, but if they find possible evidence of fraud, they can look back 7 years.
__________________
Retired since summer 1999.
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01-11-2021, 05:56 AM
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#20
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,286
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I have mine back to 1977, but all in pdf form. I stopped keeping hard copies, and shredded what I had, years ago. Why do I need any hard copies?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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