Last Updated 12:33 am PDT Tuesday, April 29, 2008
Story appeared in BUSINESS section, Page D1

http://www.sacbee.com/pfnotebook/story/897511.html

Feeling buried beneath piles of paper? Are your grocery receipts and
401(k) statements stuffed in a desk drawer or spilling out of your in-
basket? Take heart. You've got lots of fellow paper pack rats,
particularly with the tax season just behind us.

What to keep and what to toss? "We get these questions all year, but
especially after tax time," said Diana Muller, an enrolled agent and
partner with Sacramento-based Just Taxes. "This stuff piles up." To
unbury your home office or kitchen table, here's a guide to financial
record-keeping. And discarding.

To get started, gather a pile of file folders, marked by subject
("Retirement account," "Taxes," "Vehicles," etc.). Invest in a file
cabinet or secure box. For documents you want to keep, consider
getting a small safe or safety deposit box. As backup, keep copies of
important documents in your computer.

Taxes

Generally, keep your final tax return forever. But all the tax-related
documents that go with it only need to be kept for only three to four
years (how long you're subject to a possible audit). If you think you
may have your understated your income, keep documents up to seven
years.

Canceled checks

Whether you bank online or in person, you can discard after one year.
However, keep copies that might be needed for taxes, warranties or
other insurance reasons.

Investments, 401(k)s

Keep all documentation of a purchase or sale of any stock, bond or
mutual fund. Either make a separate file or lump them all together.
Once it's sold, keep records for seven years. For IRA and other
retirement accounts, keep monthly statements until your end-of-year
summary arrives.

Vehicles

Keep all maintenance records and paperwork related to your car, until
it's sold. Then give the file to the new owner.

ATM, credit card receipts

Keep until you can check them against your monthly statement; toss if
they reconcile. Keep receipts for insurance claims or tax deductions.
And if it's for a consumer product, attach it to the warranty for
future proof of purchase.

Home-related documents and receipts

Keep records of all home improvements until you sell the house because
they can be deducted against capital gains at tax time. Phone and
utility bills can be tossed after a year, unless you're deducting a
portion for business expenses.

Documents to keep forever

Birth and marriage certificates, current passports, home inventory
(for insurance records), Social Security cards, "pink slips" for
vehicles, stock purchase agreements, tax returns, current insurance
policies and divorce papers.

Don't toss it, shred it

When in doubt, shred any paperwork that contains personal financial
data, especially Social Security numbers, PIN numbers or passwords,
bank documents, signed contracts or leases, even travel itineraries or
used airline tickets.

Rip it up on Saturday

Take up to six boxes this Saturday to "Shred It & Forget It," a
professional document-shredding event sponsored by the Better Business
Bureau of Northeast California, from 10 a.m. to 1 p.m. at American
River College, 4700 College Oak Drive.

The first three boxes of paper documents will be shredded for free;
additional boxes will be charged a $3-per-box donation for the Boys
and Girls Club of Sacramento County. No binders or metal clips, and
boxes should be regular size, 1-2 cubic feet.