club_cafe: Club tax records

iras1 on

In a message dated 6/30/2007 8:04:15 P.M. Eastern Daylight Time, etana_finkler@bivio.com writes:

We have paper records from 1996 to present.
1. How many years of records do we need to keep?
2. What do we need to keep in paper?

Same as your personal tax records. Keep tax returns forever. Keep tax reporting statements for seven years (more if your state has a longer statute of limitations). Keep any documents related to cost basis of stocks for as long as you own the investment plus seven years. You should keep these documents as paper or as electronic images.

Ira Smilovitz

See what's free at AOL.com.

Etana Finkler on

Ira Smilovitz wrote:
> Same as your personal tax records. Keep tax returns forever. Keep tax
> reporting statements for seven years (more if your state has a longer
> statute limitations). Keep any documents related to cost basis of stocks
> for as long as you own the investment plus seven years. You should keep > these documents as paper or as electronic images.
________________________
Must I keep, and for how long:
1. individual member's K-1s tax records
2. monthly valuation & member status printed reports
(from what you said, bivio online reports are enough)

3. backup audit material:
a. xeroxes of deposits/cancelled checks
b. xeroxes of expenses
c. monthly bank statements?

4. How long do we need to keep the monthly minutes?

thanks, Etana, Jr Partner helping the Treasurer
Stockettes, Silver Spring, MD

Jim Thomas on

>> Ira Smilovitz wrote:
>> You should keep these documents as
>> paper or as electronic images.

> Etana Finkler wrote:
> Must I keep, and for how long:
> ...
> 2. monthly valuation & member status
> printed reports (from what you said, bivio
> online reports are enough)

I think the question here is that, since one can use the
software to regenerate reports from the past, is there any
purpose to retaining an actual image of any such reports
(either physically on paper or electronically as a PDF or
other file).

I believe there is. If you use the software to regenerate,
say, a withdrawal report or a K-1 form from five years ago
there is no guarantee that it will contain the same
information as it did five years ago when it was used to
create tax returns that year. You may have since changed
some club data (either intentionally or accidentally).
There may have been a bug in the software five years ago and
the original report may have been wrong. There may be a bug
in the software now which causes newly generated old reports
to be wrong. Etc., etc., etc.

For reports that are appropriate to keep in your club
archives, I think it's a mistake to reply on being able to
use the software to regenerate them. I think it's better to
either print them on paper or keep them as electronic images
(PDF file or other such thing).

-Jim Thomas

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