Sheila Edelstein, CPA

1200 Harger Rd - Ste 209
Oak Brook, Illinois 60523
Voice 630.574.0840
Fax 630.572.1432
info@sheilaedelstein.com

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Per IRS Publication 583, you must keep your records that support an item of income or deduction on a tax return until the period of limitation runs out. The period of limitations is generally 3 years from the later of the due date of the return or the date you filed, whichever is later. There is a 6 year period of limitation if you do not report income that you should have reported and it is more than 25% of the gross income shown on the return. There is no period of limitations on an unfiled return or a fraudulent return.

Employment Taxes – If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later.

Assets-You must keep your records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. If you receive property in a nontaxable exchange, you must keep the records on the old property , as well as on the new property, until the period of limitation expires for the year in which you dispose of the new property in a taxable disposition.

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