The dreaded due date for individual tax returns in 2012 is just around the corner on April 17th.   Even in this digital age, when most of us finish our tax return, we will invariably wind up with a lot of tax paperwork lying around.  Before you shove those paper documents into a filing cabinet never to see the light of day again, here are some helpful tips about how long to keep each document type:

You should keep your tax returns forever.  Even though the Internal Revenue Service (IRS) has a statute of limitations for auditing returns of 3 years, in special circumstances, they can go back as far as you have filed!  Supporting documentation for tax returns, like mortgage statements and property tax information, can usually be discarded after 7 years.

If you have statements for the acquisition of assets, such as purchasing a home, or buying stocks, you should keep these documents until that asset is sold plus the tax period.   This means that you will need to keep the sale records for, you guessed it, 7 years.

A great resource to help figure out how long you should save specific tax records is the IRS’ Publication 552.

Once you know the retention guidelines for your documents, I am sure Innovatively Organized can think of a few ways to store all those documents without cluttering up your office!   Contact them if you need help getting your files in order now because it’ll make filing your taxes so much easier for next year.

For additional tips on organizing your documents, download our Paper Management 101 webinar or take a look at our favorite organizing products in our Amazon Store.

Here are just some of the ways this versatile product can be used:

1. Stand it upright and use it as your Action File
2. Lay it down and use it as a paper holder that doubles as a monitor stand
3. Mount it to the wall and use it as your Mail Center

How do you use 3-tier organizers?  Get yours at our Amazon store!

Challenge:
Too much paper!  We started with an inherited office that contained a number of old files, which left little space for the introduction of new items.  By continuing to add to the amount of paper in the office, instead of removing old files from the space, the result was numerous piles of paper throughout the small office space, covering just about every available surface.

Solution:
We sorted through the paper, archived old files, cleared the vertical and horizontal surfaces, and created a new filing system.

Result:
Our client can now work in a streamlined filing system and an un-cluttered office space.  Both the walls and desktop spaces were cleared and now provide a sense of order in the office.  Files are now easily located and retrieved in mere seconds, and each piece of paper has a specific place to be returned when not in use.

View more Before and After photos on our Facebook Fan Page!

Get organized now with our Must-Have Filing Accessories Checklist!

Here are some tips for managing the piles of magazines on the coffee table:

• While reading your mag, dog ear articles, recipes, and images that you really like.  When you’re finished with the magazine, tear all of your dog-eared pages out to save, and then recycle the rest of the magazine.  
• For even better paper management, scan all of these dog-eared articles, recipes, and images so you can get rid of the paper all together!
• Recycle magazines older than one year (most of the information is now irrelevant; you can rip out favorite pages to save).  Try to recycle magazines before they pass 6 months in your home.
• If you have magazines you didn’t pull anything out of, rather than recycle them, you can donate to schools or senior centers to be used for projects or read again.
• If you want to completely rid yourself of extra magazine clutter and you have a tablet, consider signing up for the electronic version of your magazine subscriptions instead.

Mount magazine holders onto the wall to use as bins for your mail center.

If you mount three on the wall, you can use them for:

1. incoming mail that needs to be sorted
2. mail that has an action associated with it (such as invitations, bills, coupons)
3. outgoing mail

To learn more about mail centers, attend our upcoming webinar Creating a Mail Center in Your Home: Handle Bills Efficiently

• Remove your name from mailing lists
• Track the mail you have submitted to PaperKarma
• Reduce the amount of paper that comes through your door

• Everyone that receives junk mail

Challenge:
Too much paper!  The client runs her business out of her home, but the office was not working successfully.  She had file cabinets in the office, but they were not working efficiently for her.  She needed a system that would help her run her business more efficiently. 

Solution:
We sorted through the paper, archived old files, cleared the horizontal surfaces, and created a new filing system.  We utilized her existing file cabinets and also brought in a new bookshelf to store supplies and paperwork for her business.

Result:
The client now has an easy-to-use filing system, efficient storage, and an un-cluttered office space.  All files are labeled appropriately and we created a system that allows the client to easily and quickly access her business information.  She now has a flow for incoming paperwork and mail that allow her to feel a sense of peace in her office.

View more Before and After photos on our Facebook Fan Page!

Here are some tips they recommend:

• Value Your Time: Calculate estimated tax savings from the FSA and then estimate the time needed to manage it (number of claims and time to file and manage).  Understand the ROI.
• Hidden Gems: Many companies allow a grace period, up to 2.5 months after the year ends to purchase against your FSA.  If you have a baby (called a life event), you can change your contribution amount at that time.  You can spend the entire allotment on the first day of the program, even if you haven’t had it taken out of your paycheck.
• Spend Your Money: Submit your claims regularly and find out what’s eligible (e.g., acupuncture, chiropractic massage with referral, smoking cessation, contact lens solution, etc.).  Don’t lose any money at the end of the year.
• Be Organized: Set up a system for organizing the paperwork and then regularly submit FSA claims.

FlexMinder manages your Flexible Spending Account by eliminating paperwork; submitting FSA claims for you, and helping you spend your money wisely. Receive FlexMinder free for one year when you sign up before February 14, 2012.