March 22, 2010
How Long to Keep Financial Documents?
Are you wondering how long you need to keep financial documents? Check out these helpful guidelines provided by Suze Orman (America's expert on personal finance), "Financial Clutter, What to Keep and What to Get Rid of." Keep in mind, you can be audited by the IRS for no reason at all up to three years after you filed a tax return or two years from the date the tax was paid - whichever is later. If you omit 25% of your gross income you can be audited up to six years. Therefore, to be on the safe side, it's recommended to keep all financial documents relating to taxes for at least seven years. For more information visit www.irs.gov.