Each year, millions of people and businesses file their taxes. The tax year canturn into a one-inch tall pile, adding up in size as the years pass by. When the paperwork pile becomes a bother, many Dallas, TX residents turn to document shredding as a way to reduce paperwork storage clutter. However, take a look at some new ideas for tax statement shredding to protect a household or business.
Keep up with Federal Tax Laws
Both federal and state laws change slightly each year. Keep up with laws to decide when document shredding is necessary. Items that may create huge piles, such as receipts, could be scanned into a computer for use if necessary. The government will normally take a photocopy of a receipt to prove a deduction if an audit ever arises. They can always check with the other party if the transaction is legitimate.
Wait 10 Years for Tax Statement Shredding
The rule of thumb used to be three to six years of paperwork storage before tax statement shredding was safe. However, taxpayers may want to hold back on their document shredding until 10 years have passed. The government could be behind on their auditing, so 10 years is a solid time period to keep proof of all deductions. Shred any other paperwork that isn’t tax-related, however, to keep files manageable.
Hire a Shredding Company to do the Work
Shredding all those old taxes is a huge job, especially if it’s business records. Instead of buying a shredder that may not do the job, hire a shredding company. They will usually come out to a business or home and shred the items on-site. Customers see their information in pieces, ensuring no identity theft is possible.
Only Shred the Backup
If the tax pile is truly getting out of hand carefully shred any backup pages that don’t need to be shown at a potential audit. Tax worksheets and other information don’t need to be filed. Shred these tax pages and keep all the legal forms intact. Removing just the backup pages thins the tax pile out considerably.
If there is any doubt about a particular piece of paperwork, simply store it away. Only shred items that are definitely not of any use anymore. It’s possible for the IRS to contact taxpayers many years after filing for a verification. Be safe and keep any questionable items for a bit longer.