Watch Out For These Important Dates | USTaxAid

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Watch Out For These Important Dates

Written by Diane Kennedy, CPA on September 4, 2021

If you have your 2020 partnership or S Corporation on extension, the final due date is 9/15/2021. A calendar-year 2020 C Corporation with an extension is due 10/15/2021. 

One of the questions that comes up frequently is regarding the files and back-up support for the tax returns. How long do you keep the returns and records? In general, you need to keep them for at least 3 years. That’s how long the IRS has to audit those returns. If the reported income has been understated by 25% or more, then the IRS can go back 6 years in audit. If there is fraud, the IRS can go back indefinitely.

Those are the federal tax return record keeping requirements. Your state requirements may be different. Check with your tax preparer to make sure you keep the records for the required length of time. 

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