Questions for the Tax Lady: August 16th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: How long should I keep my business receipts?

Generally speaking, you should keep all business receipts for at least three years. However, you should try to keep other financial documents – such as your business tax returns – for at least five years.

Question #2: Is it possible to get copies of my old tax returns?

Yes. You can request an official copy of your old tax returns using IRS Form 4506. However, there is a $57 fee for each tax return you request. Alternatively, you could request a tax return transcript or tax account transcript from the IRS free of charge by filling IRS Form 4506T-EZ.

Questions for the Tax Lady: September 7th, 2009

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: I recently received a settlement through mitigation. Is this money is going to be considered taxable income.

Yes, it will most likely be taxable income. The only settlements that you do not need to claim as income are those resulting from a physical injury. Therefore, any awards for discrimination, emotional distress, etc., should be considered income. Likewise, if you receive any settlement from a contractual dispute then it will also need to be reported on your income tax return.

I highly recommend speaking with a tax professional if you recently received a settlement and are confused about how to report it to the IRS.

Question #2: I need to get a copy of my tax return from last year for a home loan, but I cannot find it anywhere. Is it possible to get a copy from the IRS?

Yes. If you need to get a photocopy, or computer transcript, of your last tax return you can get it from the IRS for free. Just call 800-829-1040 or file Form 4506-T (Request for Transcript of Tax Return) with the IRS. Additionally, if you need an actual copy of a processed return then you will need to file IRS Form 4506 (Request for Copy of Tax Form) and pay a $57 fee.