Decide Which Documents to Save
This week, you can
• Know which documents need to be kept and for how long
• Find ways to store files
I HAD A CLIENT WHO BECAME A DEAR friend. Long before I met her, she had been emotionally traumatized by an IRS audit. As a result, she saved everything— every billing statement, every letter, every receipt. I couldn’t get her to part with a single piece of paper. She had boxes of obsolete receipts going back decades—a mountain of space-robbing eyesores. Would anyone need to be this cautious? If you are in a cash business (a laundromat owner?), take huge deductions (trying to write off the new BMW?), or are a big-gun lawyer who deals in securities issues, perhaps yes. But not the average taxpayer.