The first step of good tax planning is good recordkeeping

Recordkeeping of your financial transactions is a key to understanding and enabling year-round tax planning.  Organization makes it easier to prepare taxes and respond to any questions from taxing authorities.

Records help organize:

  • Sources of income
  • Expenses
  • Tax returns
  • Documentation supporting the tax return

Generally, the IRS recommends taxpayers keep records for three years from the date they file the tax return.

Records to keep:

  • Tax-related records
  • IRS letters, notices and prior year tax returns
  • Property records
  • Business income and expenses
  • Health insurance

Further detail - IRS Tip

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