The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

How long do I need to hold on to my tax records?

Preparing your tax return can be a confusing process. In addition, many tax payers are unsure of what to do with their tax returns and supporting documentation once it’s been submitted. Are you allowed to throw these records away? Are you expected to keep them for all eternity—in case the IRS ever decides to revisit your tax return from 1983?

The answer boils down to how your tax documentation corresponds to its period of limitations. In today’s post, we examine this concept in greater detail:

What is the period of limitations?

The period of limitations refers to the amount of time you have to keep your tax records on file. This period of time is usually calculated from the date you filed the tax return. If you filed early, then it is calculated from the date the return was due.

In many cases, the period of limitations is three years. However, this length of time varies under certain circumstances:

  • If you have employment tax records, keep these for four years past the tax due date or payment date—whichever is later.
  • If you failed to report income that you should have reported—and this income constitutes at least 25 percent of the income you listed on your return—keep your tax records for six years.
  • If you filed a claim for a loss connected to a bad debt deduction or worthless securities, keep your tax records for seven years.
  • If you didn’t file a tax return—or you filed a fraudulent return—keep your tax records permanently.

It’s worth noting that even if the period of limitations has expired based on the above criteria, you may still need to keep certain documents for longer—e.g. if required by your insurance company or creditors. When in doubt, hold onto your documents or consult with an experienced tax attorney for advice.

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The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

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