A financial best practice is to maintain an organized financial record keeping system so you can find the records you need to make decisions and take actions to fulfill your financial goals when you need them.

• I maintain an organized financial record-keeping system.
• I keep necessary financial records.
• I store financial records in appropriate places and on a timely basis.
• I have informed someone I trust where my financial records are located so they can immediately go to them and find what is needed to carry on my financial obligations if I can not do it for myself. The attached worksheet can be helpful in identifying where your important records are located.  Location of Important Records
• I have a plan so someone else can access my electronic financial records if for some reason I can not.  
• I have a secure electronic file with an inventory of user id’s and passwords so I can get into my electronic records when necessary. I have a record of account numbers and balances so I can make financial decisions in a timely manner.
• I know the period of limitations that apply to income tax returns
  • Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
  • Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
  • Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
  • Keep records indefinitely if you do not file a return.
  • Keep records indefinitely if you file a fraudulent return.
  • Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

• I consider the following when deciding whether to keep a document or throw it away.
  • Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.
  • If you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property.
  • When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.
  • Source:  https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

• Be cautious about getting rid of documents needed to meet legal requirements.
  • For example, if you have driving offenses and have to take classes for license reinstatement, keep documents that substantiate requirements have been met until you have obtained your driver’s license.
  • Counselors and agencies are only required to keep records for a set number of years. If you choose to get your license several years after the time limit the agency is required to keep the records and you do not have a copy of your requirements met documents or certificates of completion, you will have to start the process over to meet the requirement to obtain your driver’s license.