Legal Question in Tax Law in Illinois

Keeping Documents

How long should you keep your documents in case of an IRS tax audit or for legal reasons, i.e. bank statements, tax returns?

Thanks.


Asked on 5/26/02, 2:17 am

2 Answers from Attorneys
Sanford Martin Martin Law Office

Re: Keeping Documents

Keep copies of tax returns and all supporting records for three years after the tax return was due. For example, the 2001 federal tax return was due 4/15/02; therefore, retain the return and supporting documents until 4/15/05.

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Answered on 5/26/02, 7:40 pm
Bruce Buckrop Bruce Buckrop

Re: Keeping Documents

records for assets that will have a tax basis, like a house, should be kept for the life of the asset plus three years, i.e, how could you prove what the new garage cost when you figure your basis in the real estate to transfer to the next home.

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Answered on 5/28/02, 10:15 am


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