Tax Season is Upon Us: What Should I Do with My Old Tax Returns?

As tax season approaches, now is a great time to think about the old returns you have stored at home or at the office. When is the right time to destroy old tax returns? How can you safely and securely get rid of them without risk to your personal or business information? In this blog post, we'll walk you through records retention laws for tax returns and best practices for getting rid of those old returns safely and securely - whether you're at home or at work.

What Tax Documents Do I Need?

After each tax year, you should keep your tax return and all of the supporting forms. This includes 1099s, W-2s, business tax forms, expense tracking like receipts and expense reports, mileage logs, attached schedules, records that support any itemized deductions, and any other documents that were included in your return or that supported the numbers in your return. Business owners (and those who are responsible for financials or taxes within an organization) should keep any document that supports credits, deductions, or income on a tax return. This might include bank statements, payroll records, receipts, and other documents. It's a good idea to use a tax documents checklist to ensure you have the documents you need each year, both prior to filing and then retained after completion of taxes.

How Long Do I Keep Old Tax Returns

Wondering how long to keep tax records after filing? The general rule is three years after the date you filed, but there are some exceptions:

• if you filed a claim for a loss from bad debt deduction or worthless secures, you should keep those records from 7 years
• if you did not report income that you should report and certain other rules apply, you should keep those records for 6 years
• if you don't file, you should keep those records indefinitely
• if you file a fraudulent return (which we assume doesn't apply to any of our readers, of course!), you should keep records indefinitely
• you should retain employment tax records for 4 years after the tax is paid or due - whichever occurs later.

You can find the full list of periods of limitation on the IRS website on tax document retention rules.

How to Securely Destroy Tax Records

Tax records contain sensitive information that can be used to steal identities, defraud organizations, and more. It's crucial you get rid of tax records safely and securely using a certified shredding company, offering a Certificate of Destruction (COD) to organizations that need it for audit purposes. Shred America has a 5.0-star rating from its customers on Google and meets your business needs when it comes to tax document shredding.

Contacting Shred America for Shredding Services

To get started on your tax document retention and shredding needs, reach out to Shred America today. Our experienced team is ready to partner with you, working as an extension of your team to meet your needs and stringent quality standards.