It’s tax season, and do you know what that means? Now is the best time to learn what documents are safe to keep and what documents you should shred this season. When you’re decluttering your home or business from year-old documents and hard drives, you may want to throw everything away, but there are certain documents that individuals and companies are required to keep.
Some of the documents that you are suggested to keep for more than a year are:
- Tax return forms/schedules for deductions claimed, property, investments, or business assets records for three years.
- Income-tax forms for an additional year to audit individual returns should be kept for four years.
- W-2 and 1099 forms because the IRS has six years to contact you if you’ve failed to report your income. It’s safe practice to keep these documents for six years.
- Safely store any documentation about loss from security transactions or bad debts for seven years.
For personal documents, there are specific documents that you should keep longer than seven years like records about your home, property, any investments that you’ve made, and documentation you have for any retirement plans.
Businesses have stricter protocols on what documents to shred every year. You’re encouraged to keep your business records for longer than personal documents; for instance, you should keep your employment records, invoices, bank statements, gross receipts, proofs of purchases, and asset records should all be stored for at least four years.
At On-Site Information Destruction, our experts can help you figure out what documents you should keep and what document destruction we encourage during tax season. Our services are convenient; we can come right to your business’s front door and ensure secure destruction by providing your business with a Certificate of Destruction.
Call On-Site Information Destruction at (800) 601-8201 to schedule your tax season document destruction service!