Record Retention Guide

Romans 8:28: And we know that for those who love God all things work together for good, for those who are called according to His purpose.

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If you're in doubt, don't throw it away

According to Federal law, you have to maintain copies of your tax returns and supporting documents for three years, called the “three-year law.” Due to this, many people think they're safe, only to retain their documents for this time.

If the original records are present only on paper, you can scan them and convert to a digital format. After this process, you can download them and store it in a backup storage device, cloud service, or burn them onto a CD or DVD (don't forget to label it).

You can create a backup set of records and store them electronically. You can even keep your set of records as a backup, such as bank statements, tax returns, insurance policies, and more.

Things are easier now as various financial firms provide statements and documents electronically. Most financial information is also found on the net.

To completely protect your data, you can consider online backup. Since files get stored in another part of the country, you can keep them safe in case of any natural disaster.

Caution: Identity theft is a major threat today. You must take every precaution to prevent it. After it is no longer necessary to retain your tax records, financial statements, or any other documents with your personal information, you must destroy them to dispose completely. Do not throw them in the trash.

If IRS finds you have underreported your income (by 25 percent or more), or believes there may be indication of fraud, it might go back six years in an audit.

Romans 8:28

And we know that for those who love God all things work together for good, for those who are called according to His purpose.

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Record Retention Guide

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