The best way to store hard copies of tax documents is in a fire-proof safe. Along with your tax records you can keep other important documents like the deed to your house, mortgage and insurance information, your will or trust documents, and passwords to bank and brokerage accounts.
How long should you keep your tax returns before destroying them?
Typically, the IRS has 3 years after the due date of your return (or the date you file it) to initiate an audit, so you should plan to keep your tax returns and supporting documents for at least 3 years before shredding them.
Is it safe to store tax returns in Google Drive?
Google Drive is generally very secure, as Google encrypts your files while they’re being transferred and stored. However, Google can undo the encryption with encryption keys, meaning that your files can theoretically be accessed by hackers or government offices.
Should I shred old tax returns?
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
How do I protect my tax documents?
You should encrypt the files both on your computer and any back-up drives you use. You may have to purchase encryption software to ensure the files’ security. Dispose of old tax records properly. Never toss paper tax returns and supporting documents into the trash.
How do you dispose of old tax returns?
The key to securely disposing of tax records is to use a quality shredding service that will properly shred statements, tax return documents, and dispose of receipts using the most thorough and complete shredding methods available. When it comes to shredding old tax returns, you can never be too careful.
Do I really need to shred documents?
Most experts suggest that you can shred many other documents sooner than seven years. Destroying documents with your personal information reduces the likelihood of becoming an identity theft victim. Shredding is just one way to reduce the risk of identity theft.
Is it safe to store tax documents on Dropbox?
If you’re storing your documents on the cloud, through a system such as Google Drive or Dropbox, for example, make sure that you’re doing your due diligence with security. Paper documents work fine, but it’s wise to back them up online in case a fire, flood or other disaster destroys them.
Is it safe to store tax documents on iCloud?
The simple answer is that your data is at least as safe as it is when stored on any remote server, if not more so. All data is transferred to computers and mobile devices using secure sockets layer via WebDAV, IMAP, or HTTP. Notes are also not encrypted on iCloud servers.
Where do you store digital tax documents?
Finally, digital files must be stored in a secure place. Online storage, or “cloud” providers, such as DropBox, Google and SugarSync provide some of these basic services.
Can the IRS go back more than 10 years?
As a general rule, there is a ten year statute of limitations on IRS collections. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were assessed. Subject to some important exceptions, once the ten years are up, the IRS has to stop its collection efforts.
How far back can the IRS audit you?
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don’t go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
How long should I keep paperwork?
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W–2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
Can you email tax returns?
Yes, you can file an original Form 1040 series tax return electronically using any filing status. Filing your return electronically is faster, safer and more accurate than mailing your tax return because it’s transmitted electronically to the IRS computer systems.
How do I send a file securely?
With that said, here are your best file-sharing options—and the features that set them apart.
- Firefox Send. Courtesy of Firefox.
- Dropbox. Courtesy of Dropbox.
- WeTransfer. Courtesy of WeTransfer.
- Google Drive. Courtesy of Google.
- OneDrive. Courtesy of OneDrive.
- SendAnywhere. Courtesy of Send Anywhere.
- iCloud. Courtesy of Apple.
How do I upload my tax documents?
My DocsTM is available in all paid TurboTax Online products or by adding PLUS to Free Edition.
- Sign in to your TurboTax account.
- Scroll down to Your tax returns & documents.
- Select My Docs.
- Select Upload and select the document you want to upload.
- Answer the questions and select Done or Upload another tax form.