Provided by the Bucks County Department of Consumer Protection:
Q. I am in the midst of spring cleaning and once again I find myself not knowing what documents and various paperwork I should keep and which I should shred. I feel like I am becoming a Pack Rat because I worry I will get rid of something I will end up needing so I have been keeping all of it. How do I determine what to keep and for how long? – P.R., Ottsville
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A. For starters, you should always keep any and all documents related to major life events. For example; birth certificates, adoption papers, Social Security cards, passports, marriage and/or divorce decrees, death certificates. You should also safely store auto titles and home deeds for as long as you own the property.
You can shred many other documents sooner; after paying a credit card or utility bill shred those immediately. After one year, shred bank statements, pay stubs and medical bills unless you have an insurance dispute ongoing. This is a great step towards reducing the risk of identity theft.
One of the most frequent questions we receive about when to shred is where tax returns are concerned. We would recommend keeping these. Forever. Your pay stubs can be shred after you check them against your W-2. Any Home Improvement receipts you may have should be kept until you sell your home since certain expenses could reduce your capital gains tax.
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As far as other tax records such as receipts and cancelled checks; wait seven years before shredding. The IRS usually has three years in which to audit you, however, under certain circumstances such as a fraudulent return, can audit you at any time.
For the average, honest taxpayer, seven years is a good amount of time to wait before shredding.
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If you are still unsure about what tax documents to keep and which to shred you can visit http://www.irs.gov/Advocate . You can also call 267-941-6623 your local tax advocacy service.
For additional information and brochures on various consumer related matters visit the Bucks County Consumer Protection/Weights and Measures Department athttp://www.buckscounty.org/government/CommunityServices/ConsumerProtection/ConsumerTips
