What is the point of holding tax records over a certain period of time?

[Accountinglads]

Maintaining tax records over the recommended time spares you the hassles of potential audits and challenges, and mistakes. IRS has the right to audit returns within a period of three years or more depending on discrepancies discovered during the audit. Keeping records like receipts, W-2s, and 1099s help keep the records well filed so that amendments become simple. Checks on property or investment should be maintained until selling of the asset and payment of taxes. Tax organization makes it much easier to prepare taxes, comply with these requirements, and show that deductions or credits took place to avoid fines and feel at ease.

Source: accountinglads.com/how-long-to-keep-tax-records