Full Time RVer

A fulltiming couple we know just completed their annual foray into the frustrations of tax filings. Yep, they had to file for an extension this spring, and spun it all out until nearly the last minute. “What’s almost as bad as having to do the paperwork,” said one, “is trying to figure out what to do with all the dratted paperwork!”

Sure enough, for those of us who live in small–and definitely finite–spaces, keeping tax records can be a real test. One of the major US legal firms, Duane Morris, says that it’s not just a matter of hanging onto your paperwork for a year or two. In an internet article published by the firm, their view of how long to keep tax records could prove to be scarey for many of us, “An arguably good rule of thumb for keeping tax records is to add a year to the IRS statute of limitations period. Using this approach, you would retain your income tax records for a minimum of four years (three-year general statute of limitations period plus one year), but it may be more prudent to retain them for seven years, which is what the IRS generally, yet informally, recommends.”

For RVers who are self-employed, visions of ledgers, receipts, and other underlying documents floating around in the “basement storage” for the next seven years takes on a nightmarish quality. Happily, that same legal firm provides a possible way out: “The IRS permits taxpayers to store certain tax documents electronically. Although the electronic storage rules are aimed primarily at businesses and sole proprietors, they presumably apply to individuals as well. These rules permit taxpayers to convert paper documents to electronic images, destroy the paper documents and maintain only the electronic files. Certain requirements must be met to take advantage of an electronic storage system (e.g., the electronic storage system must ensure that an accurate and complete transfer of the hard copy information is achieved and that an efficient retrieval of the information is possible, among other requirements).

Many computer-savvy RVers already have the necessary equipment for that job. Some printers have built-in scanners, and nearly all laptops will “burn” CDs. Attaching little receipts to full size sheets may make the scanning process easier. Not “techie” enough for the task? Check around, you’ll likely find a business that will do the scans for you. Just bear in mind that any documents you “turn loose” for processing are sensitive, and in this era of identity theft, be careful whom you choose.

We find it helpful to keep a hard copy of each year’s tax return available for reference. We also keep a copy of the return as an electronic “pdf” file so we can print one should a need arise.

Finally, the big disclaimer: This information is for entertainment purposes only. Please consult with an attorney or tax professional before undertaking “alternative” storage of tax records, and to determine exactly what records you should preserve and for how long.

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