TAXES don't have to be a dirty word.
There was a time where that very word sent me into a panic. We had hit a hard time and so rather than face it head on we chose (and it was a choice) not to file taxes. We were due a small refund so I made the assumption we didn't need to file. WRONG.
Then I was in the hospital the next year.
The following year we had a death in the family.
There was always an excuse as to why we didn't file after all, we were due refunds and so why would the powers that be give a rip if they sent us a check or not right? WRONG!
Oh we had created such a mess. Then the state seized our bank account AND garnished hubby's wages. WHY? Because habitual non filers must be hiding something. Then I filed for the current year (2008) and low and behold, we were audited. I filed again in 2009 ~ again it set off bells and whistles so no money was paid out to us.
It wasn't a bad audit ~ we didn't have enough assets for anyone to care about however we did need to prove we were married, and that we had kids. Yeppers our marriage certificate and all the kids birth certificates were requested by the state.
We had a great rep with the State, and we filed all back taxes both state and federal. It took quite a bit of work but we finally got it all straightened out. I needed to file for 2005, 2006, and 2007 I didn't realize how much stress the tax mess had been causing me ~ until we were through it and all the refund money was tracked down and paid to us. It was a tidy little sum and quite refreshing.
Why am I telling you this on a prepper's site?
Because ~ if you are going to fly under the radar FILE your taxes even if you are due a refund!
That brings me to our
- Indexed by year
- most current year on top
- keep a copy of returns AND all supporting documentation
If there's ever a question you'll have it right there together and that will save you time, effort, and loads of stress.
The IRS says keep 7 years. I say Keep 10 JUST IN CASE.
Did you recently get married/divorced? Keep a copy of your divorce decree here too... Just in case!
Keep those old documents!
Create a book that is merged with his and hers info going back as far as you can (no more than 10 yrs)