Tampa Tax Attorney: Keeping Tax Records the Right Way
Men are governed by laws not by men. Moreover, almost every aspect of your life is invaded by the laws of
the land. From the disposition your properties, to the expected norms in the society and eventually to the
manner of paying tax contributions, no one is considered above the law. For that reason, there are things that
you need to comply and consider in order to adhere to what the law expects of you. Tax laws may seem
complicated depending on the state you are in. Tampa tax attorney may have different legal advice
compared to a tax attorney in China. This is because the tax system of different states is diverse. Tax law,
which is a codified system of laws that covers government levies on certain business or economic
transaction, imposes taxes. These taxes are delivered back to taxpayers by way of government projects. If
you failed to do your duty as a taxpayer, you will be punished.
Tax law is a sub-discipline in law schools. They are consultative in nature however; they can be used in
litigation purposes. Tax law is crucial in business as well as personal planning matters. If you are facing an
Internal Revenue Services (IRS) trouble, you need a tax attorney to assist and defend you.
Tax laws demand that you keep tax records for the government to check. Said records can also serve as
proof of your compliance with the tax laws. Nonetheless, many taxpayers have no idea about what records
to keep and how long to keep them.
By tax records, it means tax returns and several documents that support your returns like bank statements,
receipts, 1099s, and more. These documents are important to fend off the IRS. Your tax attorney will tell
you what these records are and how important they are.
However, to make it easy for you, here is a quick review:
Tax returns contain the tax contribution that a taxpayer has to pay. They serve as a good proof that you have
paid your taxes moreover; they have to be kept indefinitely. IRS is known for misplacing and losing tax
returns so be sure that yours come in handy to circumvent a nasty audit. IRS is receiving millions of tax
returns every three months moreover; lost returns can be said to be part of the inevitable. Hence, it is better
to keep every single tax return that comes into your possession.
If you are filing your tax returns electronically, better get copies from the filing company. By the way, they
are required by law to give you copies. Supporting documents, on the other hand, should be kept for a period
of 6 years from the filing of the returns. However, this period can be extended in special cases.
Tax records are vital in case of divorce proceedings. Moreover, it is best to save the necessary documents
like financial documents, tax returns, supporting documents, and credit reports, not just for divorce purposes
but for other circumstances as well. If you don’t keep it, anticipate encountering a nightmarish chapter in
your life. If you intend to keep your tax records in one place for easy find, you can purchase a filing cabinet
for said purpose.
If you are lucky enough, you will never need your tax records. However, if you belong to the unlucky few
who are audited, tax records will be your saving grace to prove your compliance to tax laws.