Florida Tax Returns
Several taxpayers are not clear on the length of time they should store their tax records. Tax records essentially refer to tax returns and any additional document which support the data in the returns. Bank statements, 1099s and receipts may be included in your supporting documents.
Tax Returns
To shield yourself from a confusing audit, every single tax returns must be kept indefinitely as the IRS can misplace or lose tax returns. Some conspiracy protectors state that this displays a disreputable plan, but for a fact, the IRS gets millions of tax returns within a period of three months and losing a few of them is unavoidable.
The IRS e-file Program – If returns are filed electronically, ensure that you receive copies from the filing company. They are legally required to give you hard copies so you can keep a physical record.
Tax Returns Supporting Records
Support documents of tax returns filing must be kept for six years following the actual filing date. Generally, the IRS only has a period of three years from the date of filing in which to audit you; that is, if your 2002 tax return was filed on April 16, 2003, the IRS audit would have to begin by April 16, 2006. Bear in mind, that if an extension was filed, the IRS will be allowed three years from the submission date of the return. As in all tax cases, this normal time period will have exceptions.
In the event that your tax return resembles a novel, you may not be saved from the operation of the audit period of three years. If you fail to report over 25% of gross income, the IRS will be given three more years to come after you. With the example above, the IRS would have up to April 16, 2009 to audit returns from 2002.
