AT-2003-06

RECORDKEEPING

You can avoid headaches at tax time by keeping track of your receipts and
other records throughout the year, the IRS advises. Good recordkeeping
will help you remember the various transactions you made during the year,
which may help you out on your taxes.

Records help you document the deductions you’ve claimed on your return.
You’ll need this documentation should the IRS select your return for
examination. Normally, tax records should be kept for three years, but
some documents — 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. Such items would
include bills, receipts, invoices, mileage logs, canceled checks, or any
other proof of payment, and any other records to support any deductions or
credits you claim on your return.

Good recordkeeping throughout the year saves you time and effort at tax
time when organizing and completing your return. If you hire a paid
professional to complete your return, the records you have kept will
assist the preparer in quickly and accurately completing your return.

For more information on what kinds of records to keep, see Publication
552,
“Recordkeeping for Individuals,” and Publication 17, “Your Federal Income
Tax For Individuals.” Both are available on the IRS Web site
(www.irs.gov), at any local IRS office, or by calling toll-free
1-800-TAX-FORM (1-800-829-3676).

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