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Should I file bank statements in the tax section or into a month folder?*
Personal banking statements, unless required for tax purposes, may be filed into a month folder. The light-blue Tax section is for accumulating all documents that you will need to refer to when filling out your tax return OR any documents that you need as proof to the IRS of your tax deductions and income. These may include end-of-year statements, or any personal account statements necessary to justify your tax return. As an added safeguard, you may deliberately file all your bank statements with your tax documents, thus retaining them for ten years. See label sheet 2A in your Deluxe Kit for necessary labels.
*NOTE: While FreedomFiler® provides a method of automatic purging which eliminates the need
to review files, you must ultimately decide which documents are kept two years, ten years, or indefinitely.
FreedomFiler® is not liable under any circumstances for claims of loss or damage arising from suggested
document retention guidelines. Consult a professional advisor to determine your specific document
retention needs and adapt your system accordingly.
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