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Calculator

CPA Nerds has created a full library of financial calculators to help begin planning your financial future. From interactive calculations, dynamic graphs, to fully customizable reports, we’ve thought of everything!

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2018 Tax Rates

We know tax rates can be confusing, so we’ve provided an exhaustive list of tax rates from 2015 through 2018. We’ve detailed everything from filing as single to head of household, and even social security rates.

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Tax Record Retention Guide

As April 15th comes and goes again this year, the question remains: “How long do I need to store my tax records? This old shoe box is getting quite full!”

From W4’s to refund requests and old checks, what do we do with all of those documents? Federal law requires you to keep records of your tax returns and all supporting documents for three years. It’s conveniently called the “three-year law,” but this can be misleading.

Often, people throw away their documents after this three year mark – for good reason. However, if the IRS believes that you have misrepresented or underreported your income by 25% or more, you’ll be required to produce documents for up to six years if they come knockin’.

Keep in mind that if there’s any indication of tax fraud whatsoever, or if you do not file a return, you’ll be required to produce tax and other documents for as long as the IRS requests. There is no period of limitation.

To be safe, it’s smart to follow the guidelines we’ve outlined in this post, for both business and personal use, for you.

How long should I keep business documents?

1 Year

• All correspondence with clients or vendors
• Deposit slips & duplicate deposit slips
• Purchase orders
• Receiving sheets
• Stockroom withdrawal forms
• Requisitions

3 Years

• General client and other correspondence (email threads are great for this)
• Petty cash coughers
• Internal audit reports & other internal reports
• Inventory tags
• Employee personnel records post-termination
• Employee Applications
• Insurance Policies/Expired Insurance Policies
• Time cards
• Savings bond registration records

6 Years

• Accident reports & claims
• AP ledgers & schedules
• AR ledgers & schedules
• Cancelled checks
• Expired contracts & leases
• Employment tax records
• Bank statements & reconciliations
• Expense analysis & distribution schedules
• Expired option records
• Inventories of products, materials & supplies
• Invoices
• Sales records
• Subsidiary ledgers
• Time books
• Travel & entertainment records
• Vouchers for payments to employees & vendors

What business records should I keep forever?

Federal law does not require you to keep any records forever. However, in some cases you’ll still want to keep these top 20 documents indefinitely:

1. Audit reports from your CPAs or Accountants
2. Cancelled checks for important payments, especially ones having to do with taxes
3. Your cash book and complete chart of accounts
4. Mortgages
5. Property appraisals and records
6. Retirement and pension records
7. Trademark and patent registration information
8. Bills of sale
9. All contracts and leases that are still relevant or in effect
10. Every corporate document including charter, by-laws, and documents of incorporation
11. Any documents that substantiate fixed asset additions
12. Deeds
13. All depreciation schedules
14. Year end financial statements
15. General and private ledgers with year end trial balances
16. All insurance records, accident reports, claims and policies
17. Confirmations of investments or trade
18. IRS revenue agent reports
19. Legal records and journals
20. All correspondence and anything you deem as an important matter

How long should I keep personal documents?