Paperwork ~ how long should I keep it?

My clients often ask how long they should keep their paperwork so I thought it would be helpful to share this information in my Blog.*  I will break it down into two parts. 

Part A - Personal Paperwork Timeline
Part B - Business Paperwork Timeline

PART A - PERSONAL PAPERWORK TIMELINE
SOURCE USED:  Bankrate.com

TAXES - 7 years
(Returns, canceled checks, receipts and other back-up documents used for tax calculation purposes)

• The IRS has three years from your filing date to audit your return if it suspects good-faith errors.  The three year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund.
  
• The IRS has six years to challenge your return if it thinks you underreported your gross income by 25% or more.
  
• There is no time limit if you failed to file your return or filed a fraudulent return.
  

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