Filing Taxes: Top Ten FAQ

Questions:

• How long should I keep my tax papers?
• How long should I worry if I haven't filed tax returns that I should have filed?
• If I can't pay my taxes, should I file my return anyway?
• Can I get an extension to pay a tax without penalties and interest?
• My state had an amnesty period for nonfilers. Can I ever hope the IRS will have one?
• Who has access to my IRS file?
• Is it true that the IRS pays rewards for turning in tax cheaters?
• What should I do if I don't get my refund?
• Can the IRS charge me interest if I was incorrectly sent a refund and the IRS now wants it back?
• How legitimate are the claims by "tax experts" that you don't have to pay income taxes?

Answer:

How long should I keep my tax papers?

At least three years, but six years is preferable. The IRS has three years after you file a tax ­return to complete an audit. The IRS can audit you for up to six years if it suspects that you underreported your income by 25% or more. If the IRS suspects fraud, there is no time limit for an audit, although audits beyond six years are extremely rare.