If
you’re still keeping old tax returns and receipts stuffed in a shoe box stuck
in the back of the closet, you might want to rethink that approach.
The
IRS has teamed up with state revenue departments and the tax industry to make
sure you understand the dangers to your personal and financial data. Taxes. Security. Together. Working in partnership with you, we can make a
difference.
You should keep your tax records safe and secure,
whether they are stored on paper or kept electronically. The same is true for
any financial or health records you store, especially any document bearing
Social Security numbers.
You should keep always keep copies of your tax returns
and supporting documents for several years to support claims for tax credits
and deductions.
Because of the sensitive data, the loss or theft of
these documents could lead to identity theft and have an economic impact. These
documents contain the Social Security numbers of you, your spouse and
dependents, old W-2 income and bank account information. A burglar could easily
turn your old shoe box full of documents into a tax-related identity theft
crime.
Here are just a few of the easy and practical steps to
better protect your tax records:
· Always
retain a copy of your completed federal and state tax returns and their
supporting materials. These prior-year returns will help you prepare your next
year’s taxes, and receipts will document any credits or deductions you claim
should question arise later.
· If you
retain paper records, you should keep them in a secure location, preferably
under lock and key, such as a secure desk drawer or a safe.
· If you
retain you records electronically on your computer, you should always have an
electronic back-up, in case your hard drive crashes. You should encrypt the
files both on your computer and any back-up drives you use. You may have to
purchase encryption software to ensure the files’ security.
· Dispose
of old tax records properly. Never toss paper tax returns and supporting
documents into the trash. Your federal and state tax records, as well as any
financial or health records should be shredded before disposal.
· If you
are disposing of an old computer or back-up hard drive, keep in mind there is
sensitive data on these. Deleting stored tax files will not remove them from
your computer. You should wipe the drives of any electronic product you trash
or sell, including tablets and mobile phones, to ensure you remove all personal
data. Again, this may require special disk utility software.
The IRS recommends retaining copies of your tax
returns and supporting documents for a minimum of three years to a maximum of
seven years.Remember to keep records relating to
property you own for three to seven years after the year in which you dispose
of the property. Three years is a
timeframe that allows you to file amended returns, or if questions arise on
your tax return, and seven years is a timeframe that allows filing a claim for
adjustment in a case of bad debt deduction or a loss from worthless securities.
To learn additional steps you can take to protect your
personal and financial data, visit Taxes. Security. Together. You also can read Publication 4524, Security Awareness for Taxpayers.
Each and every taxpayer has a set of fundamental
rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect
them on IRS.gov.
Additional IRS Resources:
· IR-2015-129, IRS, States and Tax Industry Announce New Steps to
Help Public to Protect Personal Tax Data
· Fact Sheet 2015-23, IRS, States and Industry Partners Provide Update on
Collaborative Fight Against Tax-Related Identity Theft
No comments:
Post a Comment