Shredding During Tax Season: Your Top Questions Answered

Taxes are due by April, so it’s time to start prepping for tax season! Trying to keep track of all the proper documents can be overwhelming.

Shredding old documents is crucial for protecting your identity and finances. How do you know what to shred and what to file away for later? SEAM Services is here to help.

Here’s the ultimate question-and-answer guide for shredding during tax season. Learn which documents you should hang onto and which are cleared to go through our premium shredders!

What Not to Shred: Important Documents to Keep After Tax Time

Some people mistakenly believe that once their taxes are filed, they can shred everything at once. This could be a critical mistake for your business and personal finances. The IRS recommends keeping certain documents for years after you file.

How Long Do I Keep Tax Returns?

Your tax returns indicate how much you owe to the IRS each calendar year. In some cases, the IRS issues refunds if you’ve overpaid your taxes.

You should keep all tax returns for at least three years after filing. When tax time rolls around, assess which returns are less than three years old and file them away for safekeeping.

How Long Do I Keep Year-End IRA Statements?

You should keep all year-end IRA statements for at least six years after you file. These statements are different from regular IRA statements. You can shred regular IRA statements after you receive your year-end statement.

What Should I Keep Related to Tax Credits and Expenses?

If you get deductions for certain business expenses on your taxes, you should keep all receipts and bank statements in a safe place. The IRS may audit you and want to see hard proof of the business-related items and services you’ve spent money on. The same applies to anything that earns you a tax credit or deduction when you file.

Should I Keep or Shred Old Bills and Invoices?

Always shred bills and invoices that you’ve paid off in full. These often contain names, addresses, and other sensitive information. Once you’ve paid what you owe, send all identifying bills and invoices to us for thorough shredding and destruction.

Why Do I Need to Shred Old Tax Documents?

Once your documents have aged out of the recommended retention periods, it’s safe to dispose of them. Shredding is extremely important because it ensures no one can steal your information. If you throw important tax documents in the trash, others may gain access to your sensitive information. This can lead to identity theft and other serious problems.

Premium Year-Round Shredding Services Near Sioux Falls, SD

You should opt for tax document shredding in North Dakota and South Dakota rather than throwing sensitive documents away. Our premium shredding services are here for your business during tax time and the rest of the year.

At SEAM Services, we ensure your private information is gone for good once you no longer need old tax documents. We offer the best in data destruction and document shredding. Start preparing for tax time and get a quote from us today!