MoneyMatters101.com Home
Information about Taxes

1031 Tax Exchange
Are Taxes Fair
Automatic Extension
Avoiding Penalties
Capital Gains Tax
Claiming Children
Costly Errors
Deal With Uncle Sam
Earned Income
Electronic Filing
Filing Joint Returns
Filing On Time
Filing Separate
Filing Tax Returns
Filing Status
Getting Audited
Get Professional Help
Giving Gifts
Income Tax
Innocent Spouse
Is Filing Mandatory?
Marital Status
Paying Back Taxes
Paying Your Taxes
Rental Income
Taxable Income
Tax Definitions
Tax Exempt
Taxpayers Rights
Tax Penalties
Tax Questions
Tax Records
Upset About Taxes
Who Pay Most Tax?


Email Us

Credit Problems
Estate Planning
Wind Power

Sen. Barack Obama
Sen. John McCain

Political Issues


Tax Records

Keeping good records is the key to maximizing tax-saving opportunities and minimizing losses when filing your tax returns or for Internal Revenue Service (IRS) audits.

It is the responsibility of the taxpayer to keep up with his own expenditures and receipts during the tax year.

Good record keeping and organization is essential on all spending, whether for home payments, lease payments, vehicle mileage, office overhead, operating expenses, and other business expenditures, helps make it easier on you, or your professional tax consultant, when preparing your tax returns.

Records provide the tax consultant with an instant look at what your expenses are, what can be used as a write off, and good record keeping reduces the possibility of filing errors.

The best way to keep records is to buy a small file cabinet, a file folder, or a large envelope that you can access any time there is a need.

  1. Keep a file for all your bills, starting each one at the beginning of the year (January 1).
  2. If you are in business, always keep a set of account books available.
  3. Immediate write down all items that may be used as deductions.
  4. Write in your checkbook all bills that you pay with checks from your personal account or your business account.
  5. Keep all bank statements and cancelled checks.
  6. Keep records of all charity donations.
  7. Keep a daily diary or planner noting all your deductible expenditures.
  8. Keep all records relating to real estate purchases and sales including escrow documents, loan documents, title insurance documents, and all other pertinant papers. These records should be kept separately and stored in a secure place.
You should always keep records for at least 3 years but it may be a good idea to keep them for 6 years. Most IRS audits take place within the third year of filing but it has been documented that the IRS may go back to as many as 6 years on an audit.

Book of the Month

Book about investing

Advertise on MoneyMatters101.com



Accessibility Policy| Terms Of Use| Privacy Policy| Advertise with Us| Contact Us

Use of this web site constitutes acceptance of the Terms of Use.

We are looking to create more mutually beneficial partnerships. If you are interested in partnering with MoneyMatters101.com, send us your proposal.


Link to MoneyMatters101.com