Tax Records - What You Should Keep And For How Long

Written by Richard A. Chapo


Many taxpayers are confused about how long they should keep tax records. The term "tax records" refers to your tax returns andrepparttar documents that supportrepparttar 112030 information in repparttar 112031 returns. These documents can include receipts, bank statements, 1099s, etc. If you are one ofrepparttar 112032 unlucky few to be audited, these records will be vital to fending offrepparttar 112033 IRS.

Tax Returns

To protect yourself from a nasty audit, you should keep all of your tax returns indefinitely. The IRS has been known to lose or misplace tax returns. While conspiracy advocates argue that this is evidence of a nefarious scheme,repparttar 112034 simple fact is thatrepparttar 112035 IRS receives millions of returns over a three-month period and lost returns are inevitable. So how do you protect yourself? You keep copies of every single tax return.

A quick word onrepparttar 112036 IRS e-file program. If you file your returns electronically, make sure you get copies fromrepparttar 112037 company that filed your return. All such entities are required by law to provide you with paper copies.

Records Supporting Tax Returns

You should keep supporting tax records for a period of six years fromrepparttar 112038 daterepparttar 112039 returns were actually filed. In generalrepparttar 112040 IRS only has three years to audit you fromrepparttar 112041 filing date. For example, if you filed your 2000 tax return on April 15, 2001,repparttar 112042 IRS would have to start an audit by April 15, 2004. Keep in mind that if you filed an extension, repparttar 112043 IRS will have three years fromrepparttar 112044 date you submitted repparttar 112045 return. As is always case with taxes, there are exceptions to this general time period.

If your tax return looks likerepparttar 112046 great American novel,repparttar 112047 running ofrepparttar 112048 three-year audit period may not save you. Failure to report more than 25% of your gross income gives repparttar 112049 IRS an additional three years to pursue you. Usingrepparttar 112050 previous example,repparttar 112051 IRS would have until April 15, 2007 to audit your 2000 tax return.

Preventing Foreclosure Proceedings and understanding your options

Written by Mark Lambie


Every year over 8 million homeowners are seeking help preventing foreclosure proceedings. This is a stunning 30 year high. Experts project that by 2006, 12 million homeowners will be teetering onrepparttar brink of foreclosure. Many homeowners are not aware thatrepparttar 112029 can prevent foreclosure and save their house. Did you know that you can’t stoprepparttar 112030 proceedings up to an hour beforerepparttar 112031 auction takes place?

As a homeowner facing foreclosure there are various options available. We will briefly examine some ofrepparttar 112032 most popular options.

Reinstaterepparttar 112033 loan – Ideally you would like to be able to payrepparttar 112034 loan payments that you are behind on and bringrepparttar 112035 loan current. These costs would include whatever owed onrepparttar 112036 missed payments, and any additional late charges or attorney fees. This isrepparttar 112037 most efficient way when preventing foreclosure proceedings.

Get forbearance – When a lender forecloses on a property it is expensive for them. They would rather work out some sort of arrangement than proceed withrepparttar 112038 foreclosure. Talk to your lender and see if they are willing to work out a plan that outlines a way to get current on your mortgage. This agreement will vary depending onrepparttar 112039 situation andrepparttar 112040 lender. Some things they may be able to help with are a temporary reduction or suspension of your payments. If you have a FHA VA or other government loans you may qualify for even more options.

File for Bankruptcy - Some attorneys may advise a homeowner to file for bankruptcy. This is a legal way to avoidrepparttar 112041 foreclosure process. Howeverrepparttar 112042 process may still continue and you will be stuck with bad credit for 7 years. You should consult your attorney aboutrepparttar 112043 option of bankruptcy.

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