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By SANDRA RICHARDSON
Extension Agent
It’s better to be safe than sorry when it comes to keeping income tax records. The law says a taxpayer must retain records as long as the contents “may be material in the administration of any internal revenue law.” That means that some records should be kept indefinitely.
The interpretation of the law is that as long as there is a possibility that a question may arise about an entry on a return, you must keep the records that explain the entry. The minimum time to keep records that document income and deductions is until the statute of limitations expires for the return.
The Internal Revenue Service (IRS) can audit a return and assess
95.5%