Now that tax season has wrapped up, many taxpayers have similar questions about recordkeeping, refunds and next steps. Here are three of the most common questions accountants hear today—along with updated answers.
I’m running out of storage. When can I dispose of my old tax files?
A good rule of thumb is to keep tax records for as long as they may be subject to an IRS audit. In most cases, that’s three years from the date you filed your return. For example, once you’ve passed that three-year window, you can typically dispose of supporting documents—unless special circumstances apply.
If you requested an extension, the three-year period begins from the date you actually filed. Additionally, if your income was understated by more than 25%, the IRS can audit up to six years after filing. There is no statute of limitations if a return was never filed or was fraudulent.
Some records should be kept longer:
- Tax returns: Keep indefinitely as a permanent record of what you filed.
- W-2 forms: Retain until you begin receiving Social Security benefits, to verify earnings history.
- Real estate and investment records: Keep for at least three years after the sale is reported, including documentation of purchase price, improvements, and depreciation.
- Retirement account records: Maintain until three years after the account is fully depleted and all withdrawals have been reported.
My return was filed weeks ago, but I haven’t received my refund. How can I check the status?
The IRS provides an easy way to track your refund through its “Where’s My Refund?” tool on its website. You’ll need your Social Security number, filing status and the exact refund amount to check your status.
In general, refunds are issued within 21 days for electronically filed returns with direct deposit, though delays can occur if the return requires additional review or was filed on paper.
After filing my return, I realized I missed some deductions. What should I do?
If you discover additional deductions or need to make corrections, you can file an amended return using Form 1040-X. In most cases, you must file the amendment within three years of the original filing date (or within two years of paying the tax, if later) to claim any additional refund.
Filing an amended return is fairly common and can be done electronically for many recent tax years, making the process quicker and more convenient than in the past.
Staying organized and informed can make tax season much less stressful. When in doubt, consult with a tax professional to ensure you’re keeping the right records and taking advantage of every opportunity available to you.
