Federal income tax returns can be audited for up to three years after filing, six years if substantial under-reported income is involved, and the audit period is unlimited in the event of fraud. All Records substantiating tax deductions should be kept as your situation dictates. If an income tax or employment tax return is not filed, all records must be kept indefinitely until the returns are filed. Once the returns are filed the retention period would apply.Laws frequently change for record retention requirements; this guide is for general purposes only and should not be used as a final source. How long you should keep your records is partly a matter of judgment and a combination of Federal and State Statutes of Limitations currently in effect; please contact our office if you have any questions or uncertainties.
| Records | Retention Period |
|---|---|
| Audit Reports | Permanent |
| Bank Deposit Records | 7 years |
| Bank Statements | 7 years |
|
Canceled Checks:
|
Varies as follows:
|
| Contracts & Agreements | Permanent |
| Corporate Charter By-Laws | Permanent |
| Corporate Stock Records | Permanent |
| Depreciation Schedule | Life of Business + 7 years |
| Employment Records | Termination + 7 years |
| Employment Tax Returns | 7 years |
| Entertainment Records | 7 years |
| Expense Reports | 7 years |
| Financial Statements | Permanent |
| General Ledgers | Life of Business + 7 years |
| Home Improvement Records | Permanent |
| Income Tax Returns | Permanent |
| Inventory Records | 7 years |
| Minutes of Meeting | + 7 years |
| Pension Records | Permanent |
| Real Estate Records | Disposition + 7 years |
| Sales Invoices | 7 years |
| Tax & Legal Communications | Permanent |
| Time Cards & Time Sheets | 7 years |
Your success is our main priority, which is why we work to identify the right blend of services for each client. With Rickhoff & Associates, you will also enjoy our personal approach to doing business. We know that every client has different goals and changing needs, so we work with you throughout the year to offer advice, review your financial status, and ensure there are no surprises at year-end. Professional, personalized, client-focused…Rickhoff & Associates is the new breed of accounting firm.
"Mr. Rickhoff was nominated by the members of the association [PASBA] to receive this outstanding award that honors a member who has consistently demonstrated the beliefs of the association's motto, Teach-Share-Learn." - Professional Association of
Small Business Accountants
For many business owners, September tends to bring a bit of a slowdown. The chaos of getting kids prepared for going back to school has passed, and a focus on saving money tends to kick in as people prepare for the coming holiday spend. Combined, this can often translate into a lull for business owners.
This is a friendly reminder that the Q3 tax estimate payment deadline is coming up fast. Be sure to make your payment by September 15, 2018 to avoid penalties. Currently, penalties for late or no payment average about 4 percent. And wouldn’t you rather keep that money in your pocket?
According to new rules from the Tax Cuts & Jobs Act, meals and entertainment tax-deductible expenses for businesses have undergone considerable reform. Because the explanations of new deduction guidelines can be confusing, we’ve created this brief outline for you. A visit with your accounting professional to ensure your Chart of Accounts is correct may also be beneficial.
