Archives for January 2013

How Long Should Financial Documents Be Kept?

Fearing an IRS audit, people have been known to keep every shred of  paper, going back decades.  Professional organizer, Regina Leeds says that while there are financial documents you should keep for life, most only need to be kept for three years or less.

Safe to Shred
Unless it shows proof of a deductible expense, many documents and receipts can be shredded monthly or annually, says Leeds. For entrepreneurs, these include:

  • ATM receipts and deposit slips after they’ve been reconciled with your bank statement
  • Monthly and quarterly bank statements if year-end statements are received

Keep for Three Years
Material that supports tax returns should be saved for three years. Leeds says this might include:

  • Income-related documents, such as invoices, cash register tapes, credit card charge slips, bank deposit slips, 1099s and W2s
  • Proof of deductible purchases and expenses, such as receipts, invoices, cancelled checks, mileage logs, and credit card slips or statements
  • Receipts for charitable contributions

As businesses become more paperless, receipts and statements are often delivered online. Some information is available for a limited time, however. Make sure you check with your account holder to understand its policy, and save or print documents that might be needed in case of an audit.

While three years is standard, according to the IRS, it can perform an audit up to six years after taxes are filed if a “substantial error” is suspected. In the case of fraud, there is no limitation on an audit. Leeds says if you are worried about being audited beyond the three-year limit, you should hold your documentation longer.

Read the rest of the article by Stephanie Vozza at Entrepreneur.com.

If the IRS has contacted you regarding unpaid taxes, the Lawyer Referral Service of the New Hampshire Bar Association can help with a referral to an attorney who specifically handles IRS tax matters.  Call 603-229-0002 or request an online referral.  Assistance might also be found through the Low Income Taxpayer Project.

Jar of money labeled Taxes.

SCOTUS to Decide Warrantless Blood Tests for DUI

Can a person suspected of drunk driving be compelled to submit to a blood test without a warrant?  That is the question before the U. S. Supreme Court today.

Blood Draw by Joshua/Yoon Hernandez at Flickr Creative Common

In October of 2010, a Missouri man, Tyler McNeely, was stopped by the  Missouri State Highway Patrol for speeding, after having a beer at a local bar.  Noticing signs of intoxication, the patrolman requested McNeely to submit to an alcohol breath test or blood test, which he refused.

After arresting McNeely,  Cpl. Mark Winder decided to take McNeely to the hospital for a blood test to “secure evidence of intoxication,” without first obtaining a warrant.

That nonconsensual blood test — considered a “search” in legalese — is at issue in front of the Supreme Court, which is expected to clarify when and under what circumstances a warrantless search can occur in such cases.

In court papers, lawyers for Missouri say that Winder didn’t attempt to obtain a search warrant prior to the blood test in part because, “Obtaining a search warrant in the middle of the night in Cape Girardeau County involves a delay, on average, of approximately two hours.”

Winder was concerned about the rate of elimination of alcohol in the bloodstream, which diminishes over time.

It turns out McNeely’s blood alcohol level was 0.154 percent, well above the legal limit of 0.08 percent . In court, McNeely moved to suppress the evidence against him, saying his constitutional rights against unreasonable search and seizure were violated.

The trial court agreed with McNeely and found that “the natural dissipation of alcohol in the bloodstream alone was not a sufficient factor to justify a warrantless blood draw in a routine stop.”  The Missouri Supreme Court affirmed the trial court’s decision.  The Supreme Court will hear the case today.

Read the entire story by Ariane De Vogue at ABC.com.

If you believe your constitutional rights have been violated, the Lawyer Referral Service of the New Hampshire Bar Association can refer you to attorneys who specifically handle civil rights violations.  Call 603-229-0002 or submit an online referral request.