Greeley’s own “Operation Numbers Game” is a Timely Reminder of Maintaining a Paper Trail

The now infamous Operation Numbers Game being argued in Colorado Supreme Court this week is a solemn reminder of the importance of preserving your tax records.

Whether or not you agree with the constitutionality of the tax record search involved in this particular case, the fact remains that, without complete and comprehensive “stewardship” of your tax filings, defending yourself could prove extremely difficult.

The “rule of thumb” has always been to preserve/maintain your tax returns for 7 years, including supporting documents (like W-2’s, receipts, real estate closing documents, etc.)  The IRS can audit you within 3 years if they suspects good-faith errors; 6 years if they believe you underreported your income by ~25%; and unlimited time if you did not file a return or filed a fraudulent one.

The problem is – where do you keep them, safe and secure?

Many people think storing them in their attic or basement works.  And it may, although paper can be highly susceptible to environmental conditions. High heat (like the temps your attic can reach in August) can accelerate paper’s deterioration, while extreme cold (perhaps in your basement) can cause paper to become brittle.  And although humidity is generally not a problem in Denver, high humidity for extended periods of time can cause paper to mold, or develop brown spots known as “foxing.” All of these conditions can also affect the ink on the documents.  In many cases, the ink can smear, or even “disappear.”

A lesser-known enemy of paper is the insect.  Insects can quietly attack, damage and eventually destroy your valuable documents. Silverfish, cockroaches, woodworms, and termites inhabit dark, warm places and eat wood pulp – also known as – you guessed it – paper.

Considering all of this, the best option for storing your valuable documents is secured, climitzied self storage – away from mold and mildew, dust, insects, air pollutants, and out of damp and/or humid areas.

Don’t be caught without your paper trail.  Consider self storage today.

Tags: self storage

This entry was posted on Friday, November 6th, 2009 at 8:17 am and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.