I'm cleaning out some of my filed papers. Anyone know how long tax info. is supposed to be kept?
Also, I have my original social security card. This is before I was married. Does this need to be kept?
5 years or 10.
That was helpful wasn't it!
In Canada it is 7 years but I don't think that will help you very much
I think in the U.S., you can be audited as far back as 7 years.
You don't state whether this is personal or business records. I can tell you that I had boxes and boxes of records in storage from a business I owned. And every year (after the oldest box became 10 years old) I enjoyed throwing out that particular box. Did this every year until they were all gone.
But as far as personal papers, I couldn't tell you. But after you get an IRS audit, you get sort of gun-shy and tend to error on the conservative side of things.
I believe that 7 year is the number but you may want to keep records for 10. The IRS can do an audit up to seven years but I believe a creditor can hold a claim for up to 10 years (state to state may vary).
I file and save most of everthing to account records, warrantees etc. I had co-signed on a loan in 1987. The person defaulted and around 1988 it went to court and I had to pay the entire loan amount because that is what a co-signer is for in the first place. To pay the loan should the primary signer fail. It sucked big time but what could I do. Anyway over the next year I paid the loan and finally received my paperwork indicating the amount was paid in full and satisfied.
In 1997 I was contacted by a bank who bought the bank who bought the other bank and so on. They said that I owed some ridiculous amount of money plus 9 years interest. Apparently bank No. 1 or No. 2 did not keep very good accounting.
The point is, if I did not have a copy of my payment stubs and a copy of the final paid in full satified letter, I might have had to re-pay that amount.
This also happened to an attorney friend of mine on a $10,000 loan. He kept all his files too. I wonder if this was just another scam by the banks thinking....wow how many people can actually prove they paid all their payments.