Ask Terry Questions Document retention

Document retention

By Terry Savage on January 17, 2015 | Wild Card

Can filed tax returns, credit card statements, paycheck stubs, bank statements, insurance explanation of benefits, etc. be shredded after 3 years?

Terry Says:  Not if you think there’s any chance you could be audited.   Wait at least 7 years, before destroying.  And there is no statute of limitations against fraud!  And, remember, it is not always you that could trigger an IRS audit.  Perhaps you dealt with a company that was audited — and then the IRS wants to spot-check either the employees of a small business, or customers.  It’s always nice to have your documentation around, even though it takes up a lot of space.  Get some file boxes, consolidate each year into one box, and either slide them under your bed, or on the top shelf of a closet!



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