Your Kissimmee CPA should ask you the following question; How much space have you allotted your financial documents? We are sure it must be room full of cabinets. Maybe it is time to shred some of these. After all, you do not need very document in there. We will quickly go over the main documents which you should keep and which you can throw away. For the details, ask your CPA Kissimmee, and they will help you with it.
Tax Records are one which you have to keep for at least seven years. Should you ever face an audit, the IRS will want to see data this old. Go through your old tax returns and if they cover the purchase of a property or some sale, it might be important for you even after several decades. Keep these returns even if their date goes back beyond seven years.
What about the documents which served as evidence of your income, deductions and expenses? You can keep these for about three years. Once this time is over, shred them because you will probably not be needing them anymore.
One more thing to note: keep your W-2 forms and other similar documents for at least six years. You might just need these later on. Consult your Kissimmee CPA.
Evers since the new laws were passed in the year 2011, your brokerage house will have information about your mutual funds, stock purchases, bonds, options and other securities. Still, before you shred these trading confirmations, make sure financial forms have your data with you. Some of them have no records before 2011, and others will want to work with you to build you record. You might just need your papers for this. So while you can shred these, do it until only you are sure your records are complete with the firm.
And by the way, these hold only for the yearly documents and reports. As far as quarterly and monthly documents are concerned, you can throw them away since all these details are also given on the annual document, but always consult your CPA in Kissimmee before you throw documents away.
Bank Statements, Checks and Pay Stubs
You should keep your last pay stub with you; you might need it when you check your W-2 form, go through your donations and track your expenses on your health isurance policy. Your salary slip will mention all of these details, which is why you must keep it with you. Once your W-2 forms arrives, there is no need as such.
For your bills, you do not need any receipts for buying groceries or the fact that you had an appointment with your doctor. Still if anything seems important just take a picture, and after that you can discard them, once you have balanced your checkbook.
Your utility bills, monthly credit reports, charges at a gas station are also records you no longer need. Please make sure that none of these can be used as a deduction. For instance, if you use your credit card for a home improvement, you might need the statement. Ask your CPA Kissimmee details about this.
If you need more information about our Kissimmee accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are not CPA’s. CPA services provided by third party provider.)