The IRS generally has up to 3 years after the tax-filing deadline to initiate an audit. Keep copies of all documentation needed to prepare your return. This includes W2s, 1099s reporting miscellaneous, interest, dividends, capital gains distributions, K1s, charitable donation documentation, and any other eligible expense for deductions and / or credits.
Beginning in 2014, you will also need to keep records showing that you had minimum essential health insurance coverage, or that you qualified for an exemption, as well as records of any subsidy you may have received. Always keep Form 8606 reporting nondeductible contributions to traditional IRAs until you withdraw all of the money from the IRAs (this is in case you must document that you paid taxes on the contributions and won’t be taxed on them again). Additionally, keep records of home improvements as long as you own your home.
Business records should be kept even longer. The state of New Mexico has been doing gross receipt audits going back 8 years!
When in doubt, DON’T throw it out!!!
Now you have the convenience of accessing any of your accounting or tax records with secure online access. We provide patented and proven industry software to assure maximum security. Learn more about cpaSAFE™.
Was your 2016 Schedule A, line 9 close to or in excess of $10,000 ?
For most of our clients and friends the answer is YES.
An item that you may have control over as 2017 comes to a close are taxes paid.
The new tax law will limit your deduction on state, local, personal property and real estate tax to $10,000 in 2018 and forward. This...
There is still time to make moves to reduce your 2017 tax bill, but the final curtain is quickly closing. There is much debate over potential health care legislation and tax reform in Washington, DC, but major changes have yet to occur. This means any tax reform is likely to take center stage in 2018. Until then consider the following strategies:
As many as 143 million Americans were exposed in this most recent hack. They reported it to the public in September but discover the hack on July 29th. Why the delay?
The theft obtained consumers' names, Social Security numbers, birth dates, addresses and, in some cases, driver's license numbers. Such sensitive information can be enough for crooks to hijack the identities...