Comments on: How long must I save my direct sales paperwork?

By: Nancy Sutherland

Nancy Sutherland — Sun, 07 Sep 2008 22:06:11 +0000

Having been recently audited by the IRS, I recommend that you save everything for 7 years. The time spent recreating documents when you are audited is time away from your business and making money.

By: v b

v b — Sat, 16 Feb 2008 18:56:52 +0000

Self-Employment income is a heavy audit area. If the IRS claims you underreported your income (either by omitting income or by inflating expenses), they've got 6 years to audit you from the date your filed or the due date whichever is later. (To not worry about the exact due date, use 7 years.) If all you had was a W-2 and minimal deductions/credits, 4 years (3 years rounded up) would be fine.
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By: ToYsTeMpTer

ToYsTeMpTer — Sat, 16 Feb 2008 15:03:46 +0000

technically about 7yrs … but remember "if" the IRS finds one thing out of place they can go as far back as they like… meaning you better have your paperwork in order.. why not go to walmart and get a $40 file cabinet just for this paperwork.. and then you can write it off as a business expense next year as well..

its better to be safe then sorry
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By: bostonianinmo

bostonianinmo — Sat, 16 Feb 2008 14:32:42 +0000

At the absolute least for 3 years from the filing deadline for the tax year in question. 7 years is recommended.

Other tax records may have a much longer retention time.

Home ownership records: Until 3 years after you sell the home.

Stocks, investments & other assets: 3 years after the sale of the last assets.

Gift Tax returns & supporting documentation: Your lifetime, plus the lifetime of any recipients of gifts where a gift tax was paid on a gift of property, plus 3 years.
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By: Jeremy B

Jeremy B — Sat, 16 Feb 2008 14:30:04 +0000

3 years is an old rule of thumb for a lot of people, but as the IRS gets more backed every year, the new reccommendation is 5 years. Hope this helps
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