– Taxpayers can dispose of most tax records related to returns for 2018 and earlier years, as the statute of limitations for IRS audits generally extends up to three years after the return filing date. However, for taxpayers understating their gross income by more than 25%, the statute of limitations extends to six years.
– Taxpayers should keep records associated with retirement accounts until the account has been depleted and the last withdrawal reported on the tax return, plus three to six additional years. Records related to real estate or investments should be retained for as long as the asset is owned, plus at least three years after selling it and reporting the sale on the tax return.
– Taxpayers expecting a refund can check the status of their refund through the IRS’s online tool by visiting irs.gov and clicking on “Get Your Refund Status” and providing their Social Security number, filing status, and exact refund amount. – An amended tax return can be filed within three years of the original return or within two years of the tax payment, whichever is later.
– The statute of limitations for bad debts is longer, allowing for an amended return to be filed within seven years from the due date of the tax return for the year the debt became worthless.
– Contact taxinsights@nksfb.com for questions about tax record retention, refunds, or filing an amended return.
Leave a Reply