Gather records to fi le accurate tax return

Well-organized records make it easier to prepare an accurate income tax return next filing season. The Internal Revenue Service encourages individuals to gather the adequate documents that can also help provide answers if their return is selected for an audit or to prepare a response if they receive an IRS notice.

“It’s important to keep records throughout the year so you can file a complete return,” said Clay Sanford, an IRS spokesman.  “Plus, you don’t want to forget something that could have qualified for a tax deduction.”

If the IRS ever questions an item on a taxpayer’s return, their records will help explain any item and arrive at the correct tax. Records such as receipts, canceled checks and other documents that support an item of income, deduction or credit appearing on a return must be kept as long as they are relevant under federal tax law. Generally, this will be until the statute of limitation expires for that return. For assessment of tax owed on a timely-filed return, this usually is three years from the due date of the return.

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