It’s something no tax payer wants to see in the mail — a notice they’re being audited.
But, Eric Erickson of the Internal Revenue Service says being audited isn’t always a bad thing.
“Sometimes they’re just audits where we want to clear something up,” said Erickson. “We’ve seen something that may not match up. You just want to make sure you respond to the notice, that you come in. In most cases, you want to keep the documentation to support what you have on your tax return, if you have what you need to back it up, you’re going to be fine.”
Erickson says it’s important to keep those records for more than one year.
“What we say is to keep your records for three or four years,” he said. “I would keep anything that has any kind of impact on what you’re filing in your tax return. If you make a charitable donation, you want to keep a receipt for that, if you buy a home. Right now there is even a deductible on sales of a new car.”