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What pieces of paper do I need to keep in order to do my taxes?
Keep detailed records of your income, expenses, and other information you report on your tax return. A good set of records can help you save money when you do your taxes and will be your trusted ally in case you are audited.
There are several types of records that you should keep. Most experts believe it’s wise to keep most types of records for at least seven years, and some you should keep indefinitely.
What type of records do I need to keep?
Keep records of all your current year income and deductible expenses. These are the records that an auditor will ask for if the IRS selects you for an audit.
Here’s a list of the kinds of tax records and receipts to keep that relate to your current year income and deductions:
How long should I keep these records?
Keep the records of your current year’s income and expenses for as long as you may be called upon to prove the income or deduction if you’re audited. For federal tax purposes, this is generally three years from the date you file your return.
Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
What kind of records do I need to keep in my business?
Complete and accurate financial record keeping is crucial to your business success. Good records provide the financial data that help you operate more efficiently. Accurate and complete records enable you to identify all your business assets, liabilities, income and expenses. That information helps you pinpoint both the strong and weak phases of your business operations.
Moreover, good records are essential for the preparation of current financial statements, such as the income statement (profit and loss) and cash-flow projection. These statements, in turn, are critical for maintaining good relations with your banker. Finally, good records help you avoid underpaying or overpaying your taxes. In addition, good records are essential during an Internal Revenue Service audit, if you hope to answer questions accurately and to the satisfaction of the IRS.
How can I tell whether I have too much debt?
If you answer yes to any one of the following questions, you should take action:
If you find several of these statements describe your credit habits, it may be that you need to take steps to manage your debt before bill collectors start calling and your credit history is endangered.
What factors affect my credit rating?
Your credit rating is affected by a number of different factors, some obvious and others few consumers are aware of. The following factors are discussed below:
What do banks look for when considering a loan request?
When reviewing a loan request, the bank official is primarily concerned about repayment. To help determine this ability, many loan officers will order a copy of your business credit report from a credit-reporting agency.
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