This statement advises individuals on how long they should retain their tax-related paperwork. It suggests keeping a copy of your completed tax return permanently, which means indefinitely, but only retaining supporting documents for three years. The rationale behind this advice stems from the Internal Revenue Service's statute of limitations for amending returns or conducting audits, which typically runs out after three years.
On a deeper level, this quote highlights the importance of distinguishing between essential and supplementary information when managing personal records. While your completed tax return encapsulates all the critical details that summarize your financial situation with the government at a specific point in time, supporting documents—such as receipts, bank statements, and other evidence—serve to verify the entries on your tax form. Keeping these items for three years allows individuals to meet legal requirements while avoiding unnecessary clutter or risk of theft. This approach not only helps manage physical space but also ensures compliance with regulatory standards without compromising financial transparency.
The quote is attributed to Suze Orman, a renowned American television personality, author, and financial expert known for her straightforward advice on personal finance management. She has been a prominent figure in helping individuals navigate complex financial landscapes by simplifying concepts and offering practical guidance tailored to the average person’s needs.
