Many people know that the federal IRS tax audit period is 3 years (or 6 + years if the IRS finds substantial errors). In fact, on its website, the IRS suggests businesses retain records. They suggest you keep records that show income, deduction, or credit. So yes, this period typically amounts to 3 years. But, depending on the circumstances or the particular records you keep, this can extend to 4, 6, or 7 years and sometimes indefinitely.

So how do you comply with federal and state requirements? Make sure your tax records align with audit limitation periods. This alignment minimizes hassle or complications that develop from inadequate or missing records during an audit.

In short: have a proper retention plan in place. Know the tax recordkeeping laws for your federal and local jurisdictions and be familiar with the tax audit limitation periods. Utilize retention scheduling software for your tax records that is responsive to the relevant legal requirements and covers your bases. Proper recordkeeping foresight and planning helps to avoid possible legal, compliance, or other issues down the road.

Contact Zasio today to see how our innovative products and services can meet your recordkeeping and information governance software needs.

Disclaimer: The purpose of this post is to provide general education on Information Governance topics. The statements are informational only and do not constitute legal advice. If you have specific questions regarding the application of the law to your business activities, you should seek the advice of your legal counsel.

The post It’s Tax Season Again: How Long Should I Keep Tax Records? appeared first on Zasio.