It happens every year whether businesses are ready or not: tax season. As businesses work to file their taxes owners should also consider where tax documents should be securely stored, retention periods and proper destruction of old tax information. By having a plan in place that incorporates these items, owners can protect the business in case of an audit or lawsuit. Let’s take a closer look at the three areas:
- Protecting tax documents. Since tax documents contain sensitive information, they should be stored in a locked area. Limit access to select personnel and password protect the electronic files.
- Retaining tax information. Typically, tax information must be kept for three years as the IRS can perform an audit at any time during this period. But, if there’s any question with filed information, they can perform audits past this mark. That’s why you should destroy unneeded documents on a set schedule. Also, choosing a secure, climate-controlled location is essential to protect your company records in the event of an audit.
- Secure destruction. To protect your business from falling victim to identity theft, shred everything. While a small office shredder may work for some offices, most businesses will need to seek the services of a company that specializes in secure destruction.
Because tax season can be overwhelming, secure storage and destruction, as well as retention periods are often overlooked. Make sure these areas are considered and properly addressed at your business. If you need help call on the experts at SSBRM, as we can evaluate your specific situation and provide tips on how to best meet your goals with the management of your information.
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