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3 May 2011 By ABradney-George

Did You File 2009 Taxes Without Keeping A Record?

3 May

An Overview Of The Importance Of Keeping Tax File Records And The Different Methods Available For Tax Organization.

When tax time comes around it is easy to fall into the habit of getting them done and then forgetting about them for another year. But good financial management can lead to more efficient tax filing and greater returns in the future and keeping records is encouraged by most financial experts.

While it may seem like a bit of extra work to organise previous tax returns, it does pay off in the long run. As well as making the next tax file easier to complete, the list of benefits from keeping a record of filed taxes include:

Awareness of changes in your financial situation
Reminders of tax deductions you could claim again
Better management of investments
More effective retirement fund management
Evidence and protection against potential audits

Most people who keep receipts and other financial information for tax time will probably already be keeping copies of their returns, perhaps even filing them along with all the other evidence needed for a thorough tax return. But for the rest of us, this concept of saving tax returns could be a little daunting, especially if it involves trying to find old returns, or even the recent information used to file 2009 taxes.

Fortunately there is often a hassle-free way to obtain previous tax returns. Accountants will keep tax records on file, and tax software does the same thing, saving the information so that you can refer back to it if and when you need to. Most tax software that you download will save the files somewhere on your computer and most online tax software options, such as TurboTax Online and the Free File software from H&R Block, provide a .pdf document which can be saved and printed when the tax return is complete.

Once these files are found on your computer, you could save them to a specific folder for tax returns, keeping them in once place for ease of access or printing copies and manually filing. The IRS recommends keeping tax records for at least 4 years, and while you can request previous tax returns, it is a time-consuming process. Keeping an organized record of taxes will keep things simple and efficient, ensuring greater financial awareness and security, which is one of the reasons why tax software can be a convenient way to file and record tax information.