Since I have a four day weekend I started doing some cleaning, among other small projects I wanted to do.
We are now in the digital age so I decided to backup all of my music onto an external hard drive and store in in case anything happens. Also due to the recent flood, I am doing the same with the programs I have for my computer since if CDs/DVDs are exposed to "contaminated" water for several days it can affect their playability. As such everything is backed up.
While cleaning I found the backup CDs I made when I was working for IHC. This was before iPods existed/and were popular, otherwise I wouldn't have spent so much time making them. I have a backup of almost every album I owned. In cleaning things up, these are how many I found.
So I'll be throwing them out along with so much other stuff it is nice to get rid of. I've got to admit, that's one thing I love about the new year. Doing your taxes, boxing up the receipts and what not, and storing it (for what is it, three years now?). Then you don't have to bother it again unless you get audited.
So this will be a very relaxing yet worthwhile weekend. I hope yours is the same.
Only 3 years? I thought it was 7. Do you mean I've been hanging onto all that paperwork for years longer than necessary? Must go clean out filing cabinet now!
ReplyDeleteI just did a quick search and this is what I found.
ReplyDeleteKeep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.
1. You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
2. You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.
3. You file a fraudulent return; keep records indefinitely.
4. You do not file a return; keep records indefinitely.
5. You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
6. You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.
7. Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
The following questions should be applied to each record as you decide whether to keep a document or throw it away.