Summer tan anyone?

Summer Oh Summer. It's that special season when everyone looks forward to getting to the beach, the pool and maybe getting a tan. Well, if you get a tan via the salon you can look forward to an additional 10% excise tax on that summer glow..... Call it the vanity tax. It goes into effect July 1, 2010.

IRS period of limitations for record keeping

This is taken from publication 552 off the IRS.gov website if you want to read the entire 10 pages of information. This covers basic record keeping and what documents to keep. In a nutshell for tax purposes here are the following period of limitations:

1. If you owe additional taxes and 2,3 & 4 do not apply to you.
Keep your records for 3 years.
It's understandable for this to happen, you owe more than you originally thought.

2. If you do not report income that you should, and it's more than 25% of the gross income shown on your return-
Keep your records for 6 years.
This should not be an issue, since you are reporting all your income, right?

3. If you file a fraudulent return
NO limit.


4. If you don' file a return
NO Limit
If you don't think you made enough money to file, file anyway. Use the 1040 EZ, and you will find out that you don't owe any money. You may even get money back with all the special credits out there.

5. If you file a claim for credit or refund after you filed your return
The later of 3 years or 2 years after tax was paid.

6. If you file a claim for a loss from worthless securities
Keep your records for 7 years.