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Probably because it is one of three certain things in life. Death, Taxes, and Going Hunting. And we have the most knowledgable group of people that you could ever find looking at this board.

Shallow
 

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Bringing home the bacon, Wild Style!!!
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I was advised by my CPA to keep them for 3 years and then distroy. Check with the IRS or a CPA for best advice. I do what my CPA says, but then he is on the hook too if there is a screw up.
 

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txhoghtr said:
I was advised by my CPA to keep them for 3 years and then distroy. Check with the IRS or a CPA for best advice. I do what my CPA says, but then he is on the hook too if there is a screw up.
Not an expert ... but I'd check into the this statement your CPA is, "on the hook too if there is a scew up."

Likely not the case. Any IRS penalties including back payment, fines and or jail time is going to come out of your hide, not your CPAs. He may offer advice, and help you through the penalty process, but at the end of the day he ain't going to pay for his mistake out of his pocket. And the IRS will go after you, not him.

Again, I'm not an expert and I didn't stay at a Holiday Inn ... but you may want to look into it.
 

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Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the "three-year law" and leads many people to believe they're safe provided they retain their documents for this period of time.

However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit.

For more info, go to the IRS website - http://www.groco.com/tools/taxretentionguide.aspx
 

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To evade is illegal, to avoid is legal, the 3 yr statutory limitation only applies if "no" frivolus activity has occured, if there has been activity the IRS may look further, the burden of proof is still on the govt., this was changed back in the late 80's maybe the 90's been too long for me to remember, I know that for some strange reason all my old tax documents got destroyed in my boat shed in Matagorda when "Claudette" came through, hmm' or was it Rita or Katrina,
 
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