Records allow you to document the deductions and credits you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination.

Normally, tax records should be kept for three years, but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.

In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return:

• Bills and statements
• Credit card and other receipts
• Invoices
• Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return

Good recordkeeping throughout the year saves you time and effort at tax time when organizing and completing your return. If you hire a paid professional to complete your return, the records you have kept will assist the preparer in quickly and accurately completing your return.

Remember to store your records in a safe, secure location to avoid loss in the event of a disaster and to prevent identity theft.

For more information on what kinds of records to keep, see IRS Publication 552, Recordkeeping for Individuals, which is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Nashville – As many as 9 million Americans’ identities are stolen each year. Identity theft is the unauthorized acquisition and use of a person’s identifying information – such as a name, Social Security number or credit card number – to commit fraud or other crimes. Through identity theft, criminals might rent an apartment, obtain a line of credit or establish a telephone account. Victims often discover the crimes when reviewing credit reports or statements. Skilled identity thieves use many methods, including:

• Dumpster diving: They rummage through trash, looking for bills or other documents.
• Skimming: They steal credit/debit card numbers by using a special storage device when processing credit cards.
• Phishing: They pretend to be financial institutions or companies and send spam or pop-up messages to get Internet users to reveal personal information.
• Changing victims’ addresses: They divert billing statements to another location by completing a change-of-address form.
• Old-fashioned stealing: They steal wallets, purses and mail – including bank and credit card statements and pre-approved credit offers, replacement checks and tax information.

Identity theft victims can spend large amounts of time and money trying to repair their name and credit record. Tennesseans can take the following steps to avoid becoming victims:

• Do not give information such as account numbers over the phone, through the mail or over the internet.
• Store personal information in a safe place, and shred old credit card receipts, ATM receipts, old account statements and unused credit card offers.
• Pay attention to billing cycles. Inquire with your bank if you do not receive a monthly bill.
• Guard your mail from theft. Do not leave bill payment envelopes in your mailbox with the flag up. Instead, deposit them in a post office collection box or at a local post office.
• Order and review copies of your credit report from the three major credit bureaus every year, to make sure it is accurate.

About the Tennessee Consumer Affairs Division

The Consumer Affairs division is a part of the Department of Commerce and Insurance, which works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee.

In a press release just made available in Washington, D.C., American Bankers Association President/CFO Edward L. Yingling praised “The strong new regulations announced today by the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration are unprecedented in their scope and signal the beginning of a new market structure for credit cards.”

The public statement reads:

“In seeking to address concerns expressed by policymakers and consumers, the Fed has severely restricted or prohibited card issuers from engaging in certain practices such as ‘universal default,’ ‘double-cycle billing,’ and raising interest rates on existing balances. The basic principles contained in many legislative proposals are reflected in these regulations.

“The disclosure requirements, which are the result of several years of consumer testing undertaken by the Fed, are a dramatic improvement over the existing legalistic disclosures. The new regulations will fundamentally alter the relationship that cardholders have with their banks and the way that banks communicate with cardholders.

“The new disclosure rules ensure that the most important — and potentially most costly — parts of a cardholder’s agreement are highlighted and in easy to understand language. This will give consumers the ability to easily compare the terms of different credit cards and make more informed decisions about their personal finances.

“While the new rules are designed to increase protections for consumers, the Fed itself has recognized that they may result in increased costs for most card users and reduced credit availability, particularly for consumers with lower credit scores or limited credit history. With the uncertainty facing our financial system, it’s absolutely vital for policymakers to understand the full impact of these regulations on consumers and the economy before judging their success or further restricting the marketplace.

“An overhaul of the market for credit cards of this magnitude will require time for full implementation, and we are committed to working with the Fed and other regulators to make these regulations work for consumers and small businesses.”

SOURCE American Bankers Association

http://www.aba.com/