Paper work

Does anybody else have a problem keeping paper work organized? I have piles every where. Wife takes care of billing, and does a fairly good job. I would like to toss some piles, but am afraid as soon as I did, I would need something from past years. I am told it is necessary to keep paper work for around seven years. Is that true? Stan

Only know what I hear on here and that is keep for 7 years BUT they can come back as high as 10 years on the tax papers so if you only have the 7 years and then they gome back at 10 with questions, then what do you do? Also any depreciation that would be longer than the 7 years even if it was first included on taxes 40 years ago may still need to come up with it. I still have a lot of my grandparents tax papers and they passed 37 & 38 years ago.

I read somewhere that if they can prove you purposely tried to defraud the govt, there is no limit on how far they can go back, guess that means you should keep everything forever, just in case. Anybody know if this is true??

In theory you need to keep 3 years.

However if they find something wrong they can go back 3 more years.

And, then for 6 years ago, you might need so e paperwork from the 3 years before that to prove the 6 years ago stuff.

So it ends up 10 years to be safe, tho 3-6 years for a lot of the common papers is long enough.

But, then, if you built a building, or did a major upgrade like new wiring or well, and are deducting that on a 20 year plan, then you need to keep that sort of paperwork for the full 20 years.

I feel your pain, I am a terrible paperwork sorter outer and keeper.....

Paul

I have to do my own business records, paper work, paper work and more paper work.

Everything gets put on office desk. When the pile gets large enough, I turn the computer on and start filing.

I've been using spread sheet for almost 20 years, windows 4.0. I keep my checking and business records on spreadsheet. I wrote a simple program for checking that looks like a checkbook. It shows running balance, very easy to use.

I have a drawer wit 12 folders. Each folder contains receipts for each address. So after they are entered on spread sheet, in the file cab they go. I have business records on computer going back 20 years. I can easily find receipts too.

I hate paper work, but force myself to do it. It usually has to be nasty outside before I sit down and do it. It's like vacuuming the carpet, paper work sucks.

I bought some plastic drawers, three to a stack, that are notebook paper size. I put all my unpaid bills in one drawer and when I pay them, I "file" the bill in one of the drawers, e.g. utilities (phone, electric, heating fuel, etc), credit card statements, feed bills, etc. At the end of the year, I organize the like statements in order by date, staple them together and store them with my taxes. I use quick books for my business and email the file to my CPA in January.

I also keep a notebook listing details of my credit card charges so when I'm paying the credit card bills eaach month, I can apportion the payment to the appropriate quickbooks account number. Simplifies entering credit card payments in your books each month.

One thing I have done to get better organized is to make a payment schedule with the payee name and date I need io have the check in the mail along with the amount owed.
As my bills come in each month, I update this spreadsheet. Each month I start with my ending check book balance and include all my projected receipts. Sounds a little confusing but it works pretty well and takes minimal time to maintain and really helps manage your cash flow. If any of you guys have any interest, email me ([email protected]) and I'll send you a copy with some detail.

I would check with Lois Lerner, I think she would have some idea. Ellis

In my practice (CPA), I tell people to keep things 7 years. The general rule for IRS was always 3 years, State of Michigan we always did 5 years. General for most things was 7 years based loosely on statute of limitations for things like collections. Items such as long term debt and equipment or other asset purchases were pretty much for as long as you owed or owned plus the usual statute of limitations. Lately Michigan is coming up with new rules on how long we have to keep things, but generally, I am comfortable with 7 years on most stuff other than assets/debts. Just remember, if it appears on your tax return for a given year, you have to keep it for the mandated time set forth by IRS and your state.

Despite what my shop looks like, I am an organizer. Starting farming I bought about 20 fold-out file boxes big enough for each years records, cancelled checks, receipts, etc. After that I bought ones at Office Depot that easily hold two years" of records. Each is labeled and they stack nicely. Format of files I use has changed little in 42 years since I still use the MN Farm Acct book system and hand enter everything. Year end summary form is well known to the CPA. Granted not necessary, but I have everything from 1972 and it doesn"t take much space.

You need to keep it for seven years but only if it is organized. If it is just piles of junk mail with a needed paper here and there just chuck the whole mess.

All I can say is I hate disorganization, but if you took a look at my kitchen table right now you'd never know it.....

At work I'm organized.

At home... I have a "piling system" too.

I've always heard that one should keep 7 years worth of tax documentation paperwork. (Maybe they can go back farther than that... will have to ask our tax accountant.)

I hate piles of paperwork

Saturday mornings I pay the bills for the week, and scan and save receipts/ documents on the puter as pdf files

Files get backed up to 3 hard drives...2 at the house, and 1 at the shop (in case of fire).

If you"ve got stacks, it"ll take a while to get it all scanned, but then it"s a minimal amount of time weekly to keep up on it.

Fred

It would take me seven years. Just to find manuals in my nice clean office.Gonna put everything in it's place. As soon as someday gets here.

I discovered the cardboard box that a case of oil comes in is, if it's opened on the side is the exact size of manila folders. After the first of the year I sort the year's accumulation into the folders and label the year on the box. I searched for months for some stock certificates until I found out the lawyer sent them to me in 1994 after my mother died. Found them in minutes.