Bean Counter Bookkeeping

   I am all about keeping files and offices organized.  What better way to do that then to purge all those receipts and invoices taking up space?  Unfortunatley, the IRS sees it differently.  

Some docs are important to keep - rule of thumb - 7 years. 

Although some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.  

In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return.

Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, and any other records to support deductions or credits you claim on your return.

For more information on what kinds of records to keep, see IRS Publication 552, Recordkeeping for Individuals, which is available on the IRS website at http/www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

   My best advice:  Get a good bankers box (or 2) for each tax year.  Clean out all your files for the previous year and store them in the box with the outside clearly labeled.  Note on the box when the 7 years are up and purge them paperwork then. 

   This method will keep your current working folders clutter free and your old stuff more managable!