Host: How long should I keep my tax return paper work for?
Aurthur Auerbach: The Statute of limitations is for a Federal purpose is three years unless you are omitting more than 25% of the income that you had for a year. That's considered the fourth Statute and then that's generally, six years. If you fail to file a tax return then the Statute of limitations never runs. The Statute starts from the time that you filed your tax return. Now there are people we call them in profession among a lot of the professional groups that I am participating in, we have people who we like to think around the five year plan that is, they don't anything and one time they show up and we want to file five years all at one time.
The thing it has to remember is that if you are a non-filer and more than three year of lapses from the year that you didn't file, the Government is under no obligation to send you your tax refund so you have lost money and that's not a good thing to have happen. So file, file your tax return. Now that's the Federal Statute, the three in six years Statute depending upon where this is been listen to, where you are resident? You need to check your states Statutes. To give you an example of how they can be very different for those people resident in the District of Columbia, D.C. has a ten year Statute of limitations. It's not three or six. So it's really important to check your locality not just go by what the Federal Statute is the three and the six years.