Ask Spectrum Tax Planning

Ask Spectrum: How Long Should I Keep Copies of My Tax Return?

BY Spectrum Wealth Management | Jun 8, 2022

When it comes to financial planning, it’s important to keep your financial and other important documents organized. It ensures you have all of the information on hand in a safe place in the event you need documents such as tax returns, billing statements, property tax information, insurance policies, and others.

When it comes to your taxes, it’s a good rule of thumb to keep copies of your tax returns, but how long should you keep them?

Generally, you should keep your tax returns and supporting information (i.e., receipts, W-2 forms, bank statements) for six to seven years. The IRS has three years to audit a return or two years after you have paid the tax, whichever is later. However, if income was underreported by at least 25 percent, the IRS can look back six years, and there is no time limit for fraudulent tax returns.

Our expert wealth advisors are here to share their insights on frequently asked financial planning questions. Feel free to contact us with your financial planning questions or to find out more about how we can help you achieve financial independence, live life by design, and connect your wealth to purpose.

Spectrum Wealth Management, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Additional information about Spectrum’s investment advisory services is found in Form ADV Part 2, which is available upon request. The information presented is for educational and illustrative purposes only and does not constitute tax, legal, or investment advice. Tax and legal counsel should be engaged before taking any action. The opinions expressed and material provided are for general information and should not be considered a solicitation for purchasing or selling any security.