Recordkeeping for Businesses in El Paso
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Are you struggling with recordkeeping? Clifford, Ross, Raudenbush & Cooper, LLC, would love to help! Tax records should be kept on a year-round basis, not hastily assembled just for your annual tax appointment. Without tax records, you can lose valuable deductions by forgetting them on your tax return, or you may have unsubstantiated items disallowed if you are audited. Avoid pitfalls by teaming up with the experts at CRRC, CPA.
Why Recordkeeping Matters
Generally, returns can be audited for up to three years after filing. However, the IRS may audit for up to six years if there is substantial unreported income. The three- and six-year limits start with the filing of a tax return; if no return is filed, the time limit never starts to run.
The following are some of the most important records to keep:
How long should records be kept?
Determining how long you should keep records is partly a matter of judgment and a combination of state and federal statutes of limitations. Federal tax returns can be audited for up to three years after filing (six years if underreported income is involved). It is a good idea to keep most records for six years after the return filing date.
There are some records worth keeping permanently, partly due to long-term needs and partly because they take up very little room. Consider permanently retaining a copy of each year’s tax return. Contracts, real estate buy/sell records, and records of property improvements should be retained for seven years after the property is sold.
Choose Us as Your Recordkeeping Partners
If you are in business, your record requirements are more extensive. Call Clifford, Ross, Raudenbush & Cooper, LLC, today to learn more about our recordkeeping services. We will be happy to assist you with a system of record retention.