(NewsNation) — Filing your taxes can be complicated, and once you’re finished, you might be tempted to get rid of your documents. However, that could potentially cause an issue down the line.
So, how long should you keep your tax returns and tax documents? The Internal Revenue Service generally recommends keeping tax returns and related documents for at least three years after filing.
That’s because the IRS has a statute of limitations to audit your return. There is also a three-year window for taxpayers to file an amended tax return from the date it was originally filed.
“Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out,” according to the IRS website.
Keeping tax return records longer than 3 years
In some situations, the statute of limitations is longer, and keeping tax return records for more than three years is deemed necessary.
If you file a claim for a loss from a bad debt deduction, the IRS recommends keeping your records for seven years.
If you don’t report income that should have been reported (and is more than 25% of the gross income on the return), keep your records for six years.
If you did not file a return for a tax year or if you file a fraudulent return, the IRS suggests keeping records indefinitely.
“If the IRS comes calling or you later discover a tax break that you missed, you’ll still have all the tax records you need,” Rocky Mengle, a tax attorney, wrote for Intuit TurboTax.