By Deborah Ritz
How long should I keep my tax returns and paperwork?
The IRS has three years after you file a tax return to complete an audit.
For example, if you filed on April 15, 2014, for 2013, keep those records until at least April 16, 2017.
The IRS can audit you for up to six years if it suspects that you underreported your income by 25 percent or more.
Also, if the IRS suspects fraud, there is no time limit for an audit, although audits beyond six years are extremely rare.
Keep records of purchases of real estate, stocks, and other investments for at least three years after the tax return reporting their sale was filed.
Can I get an extension to pay a tax without penalties and interest?
Although you can get an extension to file your tax return until October 15, you still must pay by April 15 or the IRS can impose a penalty and charge interest.
Pleading hardship on IRS Form 1127 may get you up to six months extra to pay, however few payment extensions are granted.
Even then, only penalties, not interest, stop accruing.
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Questions for Deborah Ritz can be e-mailed to The Weekly Adirondack at WeeklyADK@yahoo.com