Showing posts from December, 2021

To Retain Records, or Not to Retain, That is the Question.

Dear Accounting Professor: What are my obligations for retaining records related to my tax returns? I want to dispose of them as soon as possible and do not perceive a need to retain them after I have filed my tax returns. Minimalist   Dear Minimalist: Thank you for your question. Since I do not know where you reside and your obligations to file tax returns with any particular country, I cannot provide a response that is more specific to your set of circumstances. With this in mind, I will assume that you have an obligation to file income tax returns in the United States and are a taxpayer who is not self-employed. If this is indeed correct, then you have a legal obligation according the federal tax code (Title 26 of the US Code) to retain all of your records for at least three fiscal years after the later of your actual filing date or the end of the regular filing season. For state income tax returns, the requirements range from three to five fiscal years after the later of your actua