PAPERWORK NIGHTMARE!

All of us deal with having more paperwork than we know what to do with these days. We
are afraid to throw anything out, but we don't have file drawers enough to keep it all.

This is a list I complied (after doing a bit of research) to help you get rid of excess paperwork lying around the house. Be sure to remember that when you dispose of "stuff", if you don't have any way to shed your things, you at least make sure names, numbers, etc. are REALLY minced up small.

Identity theft is no small problem to face, so guard yourself and your family.

Here is what you much keep for at least a good while, and perhaps forever:

1. Canceled checks that are related to tax deductions or major purchases. If you pull these checks out from the rest each month it will save you lots of time later. Also keep any charitable giving and medical expenses. You can file these in an envelope saying CHECKS for TAXES 2007.

2. Keep a file with purchase and sale documents, including IRS Form 2119 for every home you've owned.

3. Keep a file of capital home improvement costs. Routine repairs don't count. Only things like new roof, remodeled kitchen, etc.

3. Credit card records - keep for 6 years.

4. Health records are forever.

5. Contracts (even those paid) are to be kept for 7 years past the expiration date.

6. Investments, contributions to IRA's, and brokerage accountings.

7. A will. (VERY important for your family - even if handwritten and witnessed by
three people is better than nothing!).

8. IRS returns. The IRS has three years to examine your return, and six years if there is a substantial under-reported income.

TRUST ME ON THIS ONE - my husband and I were audited about eight years ago and I had to come up with a TON of paperwork.

My bookkeeper made huge mistakes and we were fined, both for the errors and every day
they hadn't been paid! We had no idea we owed money. She didn't have to account for a penny of it, not even a fine. If someone does your books make sure they are
qualified.

These are the papers you should make sure to keep in a safe deposit box or someplace very safe.

1. Deeds and records of ownership. Documents as to the condition of your home and a written inventory of goods in it.

2. Birth, marriage and death certificates. Also passports.

3. Stock and bond certificates

4. List of all insurance policies and agents.

5. Adoption papers, divorce decrees and child custody agreements.

Even if you don't have a lock box to keep them in, make copies of these items and store them separately in case you need them.

YEAH! Now we are down to the toss out stuff!

1. Expired insurance policies.

2. Non-tax related checks (but they have to be more than three years old:(.

3. Records for items you no longer own. (Cars, boats, etc.)

4. Pay stubs going back more than two years.

That's pretty much it. If anyone out there can think of anything else, please drop me a comment or email and I will post an addendum to these lists!

Have fun and get to shredding and trashing all the useless garbage!