4 months ago
WASHINGTON, DC (WUSA) -- When it comes to keeping your papers in order for tax time, the Federal Deposit Insurance Corporation offers tips on what to keep and what to toss.
Hold on to income tax records for up to six years after you've filed your return. The IRS can levy additional taxes if it suspects you underreported income for that tax period.
Keep credit card and bank statements no longer than a year unless the statements have tax or other long-term consequences.
Toss bank deposit slips, ATM and debit card receipts after the transaction has been accurately verified on your monthly statement.
Credit card contracts and other loan agreements should be kept as long as the account is active.
Hold on investments records, stocks and bond purchasing documents as long as you own the investment, even seven years after you've sold or cashed in the investment.
Keep receipts, cancelled checks and other records of home improvements and real estate purchases indefinitely.
And most important, shred any papers that include sensitive information so it does not end up in the wrong hands.
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