April 15, Tax Day is just a few weeks away.  For some people, they have already received their tax refund.  For others, they are still trying to get the information together to fill out the tax forms.

Organization is the key to having a reasonable stress free tax season.  However, some people enjoy not paying Uncle Sam until the last minute.  You see them in line at the post office trying to beat the midnight deadline to mail their taxes.  Just because they enjoy doing that doesn’t mean they had not organized their information before hand. 

There are many aids to assist a person with filing their taxes.  The IRS, computer applications, on-line companies, seasonal tax companies, and a good old fashion CPA.  For people who procrastinate Shine.Yahoo.com has some ideas to aid the individuals with organizing their information.

Keepers:

  • Income – Forms W2, 1099, and K-1, bank and brokerage statements
  • Expenses – Sale slips and receipts, invoices and method of proof of payment, charity donations in writing.
  • Home – closing statements, purchase and sales invoices, proof of payment, insurance records, and proof of improvement cost
  • Investments – Brokerage and mutual funds statements and Forms 1099 and 2439

IRS’s Period of Limitations is for people who miss the tax deadline, April 15 or failed to do something correctly in filing their taxes. 

In short, keep your recorded proof:

  • 3 years – if you owe additional taxes
  • 6 years – if you failed to report 25% of your gross income on your tax return
  • Indefinite – if you failed to file a return or filed a fraudulent return
  • 3 years – if you filed a claim for credit or refund
  • 7 years – if you filed a claim on securities

The IRS has produced a publication, Recordkeeping for Individuals, which gives more details on what records an individual should keep.  By using the information that the IRS gives to the public – how can you go wrong?  Oh, let me count the ways!

Ringwood Tax Assessor’s website can help you with property details.

 

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