Date: Saturday, August 23rd
Time: 1:00 pm to 3:00 pm
Location: Preferred Accounting Parking Lot
Bring friends and documents you want securely shredded and recycled. We provide the shred truck, ice cream, cookies, water, and a chance to win some awesome giveaways! You provide the documents to shred. Cammy, Dianna, and the rest of the Preferred Accounting staff will be on hand to help you decide which documents to keep and which ones to shred.
Giveaways include: RSL Soccer game, gift cards to restaurants, a round of golf, and many more! Even if you don’t have any items to shred, stop by and say hi, you can still enter our drawing. You do not have to be present to win, we will mail your gift card if you are a winner.
Shredding old documents is a safe and easy way to clean up your home or business office. By shredding documents with personal information (name, social, address, birthdate, passwords, signatures, accounting numbers, etc.) you are keeping your information safe from identity thieves.
Items to keep
- When In Doubt Don’t Throw It Out: If you are aware of any unresolved issues or potential problems in regard to any documents, do not destroy them.
- Copies of your filed tax returns: Keep proof of filed tax returns indefinitely.
- Tax Returns: Keep tax returns and supporting documents for at least 3 years from date of filing. The IRS has 3 years to decide to audit you. After that, they can audit you up to 6 years if you under-report your income by 25% or more. There is no period of limitations for fraudulent filings or when no return is filed.
- Employment Tax Records: Keep for at least 4 years after the tax becomes due or is paid, whichever is later.
- Records connected to assets: Keep records relating to property until the period of limitations expires for the year in which you dispose, or no longer own, the property in a taxable disposition. Records must be used to figure depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.
- Records that:
- Support an item of income or deduction: receipts, canceled checks, etc.
- Credit appearing on a return relating to your tax return.
Tax Returns (From the IRS)
- You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
- You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.
- You file a fraudulent return; keep records indefinitely.
- You do not file a return; keep records indefinitely.
- You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
- You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.
- Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
How long should I keep sensitive documents?
- Pay stubs: 1 year.
- Bank Statements: 1 year. Hold onto records related to taxes, business expenses, home improvements, mortgage payments and major purchases for as long as you need them.
- Credit Card Statements: At least 45 days. Keep anything you need for taxes, and shred after you have confirmed payment.
- Medical Records: A minimum of 1 year. Holding on to medical bills can come in handy, if you need to dispute payment or reimbursement for a medical bill. Keep information about prescriptions, medical histories, health insurance, and physician contact information indefinitely.
- Insurance Records: Keep policy information for the life of the policy plus 5 years. Additional records: car repair bills, statements, hospital bills, etc. should be kept up to 5 years from date of service.
- IRA Contributions: Until you withdraw money you can shred quarterly reports as soon as you match them with your yearly statement.
- Home Purchase, Sale, or Improvements: For 6 years after you sell your home. Improvements you make to your home and expenses when selling your home, including real estate commission, are factored into lower your capital gains tax.
If you have additional questions about recordkeeping, check out the IRS’s Small Business & Self Employed Recordkeeping website http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Recordkeeping
Cammy and Dianna can also advise you on documents to get rid of, the day of the event.