FREQUENTLY ASKED QUESTIONS

HOW LONG SHOULD I KEEP MY TAX RECORDS FOR?

The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

Period of Limitations that apply to income tax returns

1. Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.

2. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.

3. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

4. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.

5. Keep records indefinitely if you do not file a return.

6. Keep records indefinitely if you file a fraudulent return.

7. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

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Source: www.irs.gov

WHAT ARE YOUR SERVICE FEES?

Service fees varies from $50 a hour to flat rate service fees. Contact QTAS for details.

WHAT ARE THE DIFFERENCES BETWEEN AN ACCOUNTANT AND A TAX PREPARER?

Accountants
Accounting professionals typically have substantial education and background in accounting that includes a wide range of accounting skills. These include performing audits; preparing financial statements for businesses, government entities, and nonprofits; understanding corporate governance structures; and dealing with various types of business regulation, including taxes.

Tax Preparers
Tax preparers concentrate on tax matters but don't necessarily have the same broad educational background that an accountant has. The quality of tax preparers can vary widely, making it useful to consider different categories of preparers.