SEARCH
2:22PM

Tax Tip: Hold On to Your Documents

iStock/ThinkstockFiling your taxes can be stressful, especially if you have multiple documents that require reporting.

"Usually if you work in a job you have a W-2," says Charles Stein, a New York certified public accountant. If you have interest in the bank, you may have a 1099. If you have a brokerage account, they also issue 1099s."

Some documents don't arrive until just a few weeks before Tax Day -- like 1099s, which don't get mailed out until February. Other forms arrive even later.

"And anybody who's involved in any kind of partnership-type investments, those documents usually don't come out until March," Stein says.

With a pile of paperwork, it's easy to make mistakes -- and those mistakes could get you audited.

Stein says he advises all of his clients to keep tax documents dating back at least seven years in case the government finds any problems.

"As far as the IRS is concerned, they can only go back three. But if they find some egregious error, they can go back further," he notes.

So make sure to always have your paperwork filed away in a safe place just in case. When it comes to your money, there's no such thing as hoarding.

Copyright © 2016, ABC Radio. All rights reserved.







ABC News Radio