The Notes

For individual tax records, retain for three years.

For business tax records, keep for four years.

For records involving stock loss declarations, retain for seven years.

These are the general guidelines set by the Internal Revenue Service (IRS) for standard tax documents.

Additionally, it is highly advisable to preserve all relevant documents, receipts, etc., particularly ensuring accurate bookkeeping of all income and expenses. In the event of an IRS inquiry, they will request all evidence related to the figures declared in the records.

Currently, there are numerous apps, software, and online programs available to facilitate the easier storage of tax documents. For commercial entities, bookkeeping, or the systematic recording of financial transactions, is crucial for business development and maintaining accurate financial oversight.

Stay proactive and calculate ahead of time the amount owed to Uncle Sam versus what you retain, whether as a refund or simply funds not due to the IRS. Understanding your financial situation in real-time enables immediate and informed financial decision-making. This approach ensures you submit your tax return promptly, thereby evading late penalties and interest charges.