How long should you keep...........?

I'm going through my lateral file and purging any paperwork that is no longer needed.

I was wondering if anyone knows how long you need to keep insurance policies? I have policy renewals for auto and liabliity dating back a few years, but I can't see any reason to keep any of them besides the current year.

Am I correct? Or should I hold on to them a while?

I'm no expert, but I'd say 5 years is a pretty safe number simply for accounting purposes.

Here is an idea for you. Take all your paperwork that is for 2002 and shove it in a rubbermaid storage container. When 2005 rolls around, get all of 2003 and shove it in its own container. So on and so forth...

Keep those in storage for 5 years, then chunk them.

I keep all that stuff with the years tax file, company files, employee files and the rest. I believe we have to keep it for 10 years since were a c corp but my wife handles all that stuff so Im not positive.

Talk to a acct. I believe the IRS can audit you for up to 3 years. Don't quote me on the years just a good guest. Thanks for the question I have to talk to my Acct.

Charlie

I would hold on to old policys if your not with the same person.