Once you file your taxes, you probably know that you should keep your tax records for a few years after the filing date. Different tax records have different retention rates, though, according to CPAs in Las Vegas.
Tax Documents to Keep for One Year
Following one year after the filing date, there are certain tax records that you can confidently shred including customer and vendor correspondence, duplicate deposit slips and stockroom withdrawal forms. Receiving sheets, requisitions and stenographer's notebooks can also be shredded after one year according to Las Vegas CPAs.
Tax Documents to Keep at Least Three Years
You will find that more important tax-related business records must be retained for a longer period of time. Records that must be retained at least three years in case the Internal Revenue Service decides to audit your tax filings according to Las Vegas CPAs include employee personnel records, internal audit reports and petty cash vouchers. General correspondence, physical inventory tags and hourly employee time cards are others.
Additionally, business records like employee tax records, invoices to customers and sales records should be retained for at least 6 years. Hang onto plant cost ledgers, accident reports and expense distribution schedules for 6 years, too.
Tax Records to Keep Forever
Las Vegas CPAs recommend you retain certain business tax documents forever stored in a safe place for your information and in case the IRS audits you or your company. There are some business records that you should keep forever, and they include accountant audit reports, current contracts and depreciation records.
Now that you can digitize your personal and business records, it is easier to store them on a USB drive. This creates a great backup if something beyond your control ever destroys your hard copies. Once you create a digital backup, though, consider storing the hard copies somewhere safe, too, just in case.