Scan Or Shred: What To Do With Old Tax Returns
Wed, Apr 20, 2022
By: Jim Beran
Another year of tax season is here and you may be wondering what to with old tax returns. The truth is, it depends. There are different timelines assigned to certain documents that may require you to keep your tax returns and supporting information longer than normal recommendations. Once you have spoken to someone with authority who can provide sound recommendations, that’s when you move forward.
How Long Should I Keep My Tax Records
How long should I keep my tax records?” As a general rule of thumb, three years is the minimum. When filing away tax returns, it’s always good to keep receipts and other records of transactions that support the information on your tax return just in case you get audited. You want to make sure you keep mileage information, deductions, W-2s, and 1099s. Anything related to what you have on your tax return should be stored along with the tax return. Many people have started to scan tax returns and supporting information just to have a digital copy as well.
So, what do you keep and what do you shred?
It’s no secret that once the tax return window has passed, you should shred tax returns. That’s the only way your personal information will remain confidential. While keeping your tax returns, keep your bank statements for a period of 3 years, canceled checks for up to 7 or more, depreciation schedules should be kept indefinitely, payroll vouchers for up to 7 years, and receipts for deductions for at least 3 years. It may seem like a lot, and it is.
Tax Document Checklist
Having a comprehensive tax document checklist will help keep you on track while providing a reminder of what you should be keeping and preparing for your taxes. You want to make sure you have everything you need should you have to file an amended tax return. The last thing you want to think about is trying to obtain documents that have been misplaced or thrown away because you didn’t think you needed them. It’s important to be mindful of your tax returns and the window of time in which they should be kept.
A shredding company can help you determine what to keep and what to shred. They can also help you develop a plan that will help you clear the clutter while properly storing everything else. Businesses usually have off-site document storage to keep their items safe, secure, and away from prying eyes. Gilmore offers a variety of services, including one-time or scheduled shredding services, drop-off services, data destruction, and storage for your items in an off-site location. Many companies fall into trouble because their information is on a computer that has been recycled. If the hard drive wasn’t submitted to be destroyed, the company has put itself in a liable position.
When you partner with a team that has everything you need in one place, it makes things easy and economical. Gilmore is ready to help you secure your old tax returns and shred the information you no longer need. Are you ready for tax season? If not, we’re only a phone call away! For more on how we can assist, contact us today!