Show Tax Saving Actions Make Good Cents M I f Keeping accurate financial records is probably one of the best tax saving actions that a taxpayer can take If you have not already set up a system it is time to begin gathering data that will be helpful when the time comes for filing your federal tax return Good records can mean the difference between filing an accurate return or an inaccurate one the Internal Revenue Service says Also good records can h help lp r. r taxpayers take all the deductions and benefits to which they are entitled r IRS does not require a specific recordkeeping system however receipts 1 cancelled checks bills old returns and other written documents should be readily available to prove deductions or expenses Tax records should be kept at least years three after the return is due or filed or two years after the tax was paid whichever is later Records that pertain to V assets investment real estate etc should be kept for as long as they are helpful helpful- for example to determine the cost of original or replacement property or to show purchase price of stocks to aid in determining profit or loss y De Detailed ailed information about recordkeeping appears in the free IRS t Publication Recordkeeping Requirements and a List of Ta Tax Publications Taxpayers can cap o obtain tain the free publication by mail by y us using ng the handy order blank contained in the tax package or by calling the IRS Tax Information Information Information 40 mation number listed in the telephone directory |