AMERICANS should keep their tax records for at least three years and storing them online could save taxpayers thousands.
Storing tax returns helps Americans protect themselves against a potential future IRS audit.
The IRS encourages taxpayers to keep their returns for three years but sometimes they may want to store them for longer.
You should keep records for employment taxes for four years from the day you pay the tax.
Americans will need to keep their records for around seven years if they claim a deduction of worthless securities or bad debts, according to .
For instance, if you lent your friend $10,000 and they went bankrupt, you should keep records to prove it was a legitimate debt.
If taxpayers bought a car in 2010 and used it as part of work before selling it in 2020, then they should’ve kept their car-related tax returns until they filed that year’s documents.
Americans can store their tax returns in a safe but scanning them online could save people thousands.
You could decide to store them on a portable hard drive or on the cloud.
The IRS accepts electronic copies of tax records providing they can be read.
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Tax refund season is underway as the IRS started accepting returns from January 24.
The agency expects around 160million tax returns to be filed this year.
Taxpayers are being…
