Spring Cleaning….Your Files
Amy Praskac, Professional Organizer, On the Record
Do you have papers piled high on your bookshelves, crammed in your desk drawers, and squashed in your file cabinet? Wouldn’t it be nice to let some fresh air into those spaces?

Spring is an ideal time to clean out your files. You’re already dealing with paperwork to file your tax return. Just keep going. Here are a few guidelines to help you decide what to keep and what you can let go.

Keep monthly or quarterly statements until you receive the year-end statement. Verify the year-end statement is correct and then shred earlier statements. This also applies to paystubs.

Keep tax-related documents for three years. The IRS has three years to audit your return. There are exceptions such as failure to report income and filing a fraudulent return. You need to retain property records that document the basis for computing gain or loss until three years after you dispose of the property and file a tax return on that income (or loss). See IRS Publication 552 for details (Rev. January 2011).

Keep warranties until they expire or you no longer own the appliance. Keep manuals for as long as you own the appliance. This may seem obvious, but when is the last time you purged your file? Many people get rid of the appliance, but forget to get rid of the warranty and manual.

Keep important documents in a safe deposit box. Important documents include birth certificates, marriage certificates, divorce papers, automobile titles, property deeds, military discharge papers, and partnership papers. Keep a list of documents and photocopies at home in case you need the information. It is vital that the safe deposit box be titled in more than one name so that you have access.

Safe disposal of documents: Shred any documents that have your personal information. This is to protect yourself against identity theft. Use a cross-cut shredder for maximum safety. Remember to oil the shredder monthly.