5. Prior audit papers

So, you have been questioned by the IRS, and everything went well. All of your papers were alright; they couldn’t find anything wrong. Amazing. But brace yourself because the IRS might verify you again. And the worst part is that they might not save your previous audit files. That means if you don’t have the papers needed to challenge them, it’s like they never audited you.

This is the exact reason you should hang on to all of the paperwork you received from the IRS: you never know when you will need it. The best thing you can do is keep your audit files forever.