Organizing Files. How long do I keep stuff?

[artist]

So I my husband and I have spent the last few weeks organizing and decluttering everything in the house. We even tackled the attic and garage over the weekend. All that is left is my husband's home office. My question is about the files? How long should we keep things. For example how many years back to do we need to hold onto things like tax returns, Do I need to keep last year's utility bills? (we have two home businesses so utilities are claimed). What about paycheck stubs? I have no idea what the rule of thumb is for this stuff and our files are overflowing.

Thanks

[Simpler at Fifty]

Google it. You will get different answers. Or if you use an accountant for your businesses, ask him/her.

[rosarugosa]

I've always heard and read 7 years for tax records. I only keep utility bills for the current year since I've never encountered a need for historical utility bills in my life.

[herbgeek]

Yes, its usually 7 years, because the IRS can go back 6 years , and you always file a year in arrears. There is no statute of limitations on fraud, this is just the routine checking the IRS can do.