Recordkeeping Requirements

Suggested Holding Periods for Tax Records:

1. It is a good policy to save copies of your 1040 and supporting schedules indefinitely.

Some reasons to hang on to your tax records, and supporting documents be:

Due to an audit by either the IRS or Oregon Department of Revenue
To substantiate stock or mutual fund basis.
To establish the basis in depreciated property.
To establish basis in rental property.
To document the sale and exchange of your personal residence.

2. The IRS requires record retention as long as they are important for Federal Tax law. Generally this means:

* 3 years from the date the return is filed…or
* 2 years from the tax payment date…or
* 6 years, if income is under-reported by more than 25%
(whichever is later).

The City of Portland / Multnomah County tax filings request that you save your returns and documentation for 7 years.

3. Keep ALL–bank statements, checks, receipts and other financial records for at least three years, especially those documents that will support your tax return figures.

4. HOLD INDEFINITELY

* All papers and receipts that deal with any purchase, sale and major improvement of your current and all previous principal residences.

* All IRA records, investment purchases and sales, and 1040 returns filed for each year.