Keeping tax records for future references

April 15, 2009 3:44:15 PM PDT
Now that you have filed your tax returns, does that mean you can finally go ahead and toss all that paperwork?

SIGN-UP: Get breaking news sent to you

Tax experts say absolutely not. You should keep records that verify your tax information in case you get audited.

Usually the IRS audits within three years, but if you under-report income more than 25 percent, the IRS has six years to come after you.

It's best to keep your records for seven years, and when you do toss them, shred them first.

       Today's latest headlines | ABC7 News on your phone
Follow us on Twitter | Fan us on Facebook | Get our free widget