There are many reasons for IRS notices, such as:

• payment of a tax bill
• math errors
• returned checks or bounced electronic debits (there is a penalty)
• request for missing or incorrect information
• a difference in what IRS records show and what you reported
• notice of audit or examination and the documents or information you will need

Acknowledgement of these notices is important, especially when payment is owed. The IRS will assess penalties and interest will accrue on owed monies. Call or write the person listed on the notice, or visit the local IRS office before the deadline to let them know you recieved the notice and are addressing the problem.

If you have any questions regarding how to respond please forward the notice to our office as soon as you receive it. We will have you sign a power of attorney allowing us to discuss the matter on your behalf.

Our office will be closed on Monday, September 5th in observance of the day. We will be available to take your calls again on Tuesday.

We’ve put together a brief synopsis for you below.

The IRS accepts electronic records, so destroy all that paper clogging your storage areas by following some of the following tips:

• - Scan receipts.
• - Download documents (check with your bank, credit card company, brokerage firm for policies about on-line access to records).
• - The IRS has 3 years to audit your return unless a substantial error is found in which case they can go back 6 years. After this time has passed shred your supporting documentation but scan or keep your paper return indefinitely. There is no deadline for fraud or failure to file. Additional information regarding IRS Audit FAQ’s can be found on the IRS website – http://www.irs.gov/businesses/small/article/0,,id=219636,00.html.
• - Scan or keep actual tax returns in case your heirs need the information.
• - Keep W-2 forms until you draw Social Security. Again, these can be scanned, no need to keep originals or paper copies.

Retirement Account Tax Forms to Keep

• - Form 8606 (helps calculate tax basis for future withdrawals from retirement plans).
• - Form 5498 (IRA and Roth IRA contributions).
• - Form 1099-R (Shows IRA withdrawals).

For loans, destroy monthly and/or quarterly statements when you get the year-end summaries. Once paid off, destroy the year-end summaries, but keep the final paid-off notices indefinitely. Also, keep appraisals and receipts for big purchase items until you no longer own them. You should also keep back-ups on thumb drives, CDs, or external hard drives and keep them with a relative or safe-deposit box.

Certain documents should be kept for life such as

• - Birth certificates
• - Death certificates
• - Marriage certificates
• - Divorce papers
• - Military discharge papers

Other paperwork you can shred unless it’s being used as backup to your tax returns

• - ATM and bank deposit receipts after reconciliation with bank statements.
• - Pay stubs after you receive the year-end summary.
• - Receipts, after three months, for minor purchases.
• - Credit Card receipts, after checking purchase record, scan if needed for tax purposes.
• - Utility bills, unless you’re writing off a home office.
• - Internet and phone bills, unless needed for tax purposes, then scan.
• - Old insurance claims, if paid, after one year, unless there was a write-off for medical costs or casualty loss on your tax return, then keep with that tax return.
• - Social Security statements can be shred when you get the new one.
• - Retirement plan statements from work, keep year-end statements for 401k or 403b. Keep all correspondence for traditional pensions such as defined benefit plans.
• - Toss expired warranties, repair receipts, owner’s manuals, insurance policy paperwork for what you no longer own or have replaced.

Remember to shred everything with your personal information, credit information or other account numbers to safe guard yourself from identity theft.

The staff at Trager, Kevy, & Trager, LLP hope that this helps you declutter your life and keep your finances in order. Please don’t hesitate to contact us if you have any questions.

Our office will be closed on Monday, 7/4 in observance of the day. Please don’t hesitate to email or call and leave a message. The office will re-open on Tuesday.

Our office will be closed on Monday, May 30 in observance of the day. Please don’t hesitate to email or call and leave a message. The office will re-open on Tuesday.

As you know, IRS email scams exist throughout the year. However, during tax season, consumers are more heavily targeted.

Do not open or reply to these emails and definitely do not click any links, no matter how legitimate the website or email looks. The IRS never sends emails. All correspondence is done through the regular United States Postal Services mail. These emails should be deleted immediately to avoid accidental exposure to viruses, spyware, phishing programs, and to avoid potential identity theft.

Be careful, be aware, and be safe. If ever you are unsure about something you receive, please do not hesitate to contact us.

Sincerely,
Trager, Kevy & Trager, LLP

Our office will be closed on Monday, September 6 in observance of the day. We will be available to take your calls again on Tuesday.

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