Tax Records

The not so obvious rule: "Keep all records for as long as you might need them." In other words, keep your tax records until the statute of limitations expire for that particular tax year. 

In most cases, if you do not owe any additional tax, the statute of limitations expires after 3 years. BUT if you:

• Under-report income on a tax return by 25% of the gross income filed on the return, the statute of limitations is 6 years.
• File a fraudulent return or do not file a tax return, there is no statute of limitations.
• File a claim for credit or refund after your return has been filed, the statute of limitations is the later of 3 or 2 years after the tax was paid.
• File a claim for a loss from worthless securities, the statute of limitations is 7 years.

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As many of you are aware, the Minnesota legislature passed the 2013 Middle Class Tax Cuts on March 21st. As a result, many tax returns were affected and Minnesota is now in the process of reviewing tax returns. Over 260,000 returns will be reviewed by the state of Minnesota from now through June 27th.

There are a few things the Minnesota Department of Revenue asks taxpayers do now. Click this link for a summary of tax law changes to see if you may be affected. For more information, contact your SDK representative, or Abel Kleinschmidt.

A divorce is a life-changing event that has many financial considerations - especially for business owners and high networth couples. If you find yourself in a divorce scenario, the following tips may help the process run a little more smoothly:

1. Gather and make copies of all your financial documents including tax returns, bank statements, brokerage statements and credit card statements.
2. Take time to write down all of your expenses and develop a realistic monthly budget.
3. Look at a comprehensive picture of all your finances rather than deciding financial issues one at a time.

The members of SDK's Forensic Accounting and Valuation Services group are available to assist with business valuations, cash flow productions, fraud and forensic investigations and asset tracing for parties going through a divorce.