Paperless Statements

[TeamCaffee]

Frank,

We are constantly being asked to go paperless by our banks, credit cards, phone bills and anything else we have that is electronic.

What will happen if we choose to go paperless and we are audited?

 

[pjjjjj]

When you 'go paperless', it only means they don't send you paper in the mail (saves them money via paper, envelope, wages, postage). They send via email attachment usually in pdf format, which you can then save in a folder on your hard drive, and you can also print out to save as a paper copy if you wish. As long as you have a good backup and filing system to count on, you may only need to print it out when asked for it.

When we file our taxes online here (in Canada), we aren't required to send any paper whatsoever, whether we file ourselves or have an accountant file on our behalf. We may get audited at any time however, and then would have to come up with the paper proof. Is it the same way over there?

 

[Turtle]

You can go online to the bank's site and print out the statements, or the banks will have them on record for a long time.

 

[TeamCaffee]

Why opt out of getting statements than?

Unless you opt out to save room in your mailbox because you do not get home very often.

The point of this was to bring awareness of what you need to do if you opt out of getting paper statements. It is not a big deal as long as you stay on top of it.

I wonder if you could go back in three years and get the back three years and get a statement?

I know with T-Chek we have to print the statement or as PJJJJ said store to a hard drive for retrieval when needed. I wonder if you could store you documents on a thumb drive and then archive the thumb drive with the container that holds your tax records for a year? I know I need to do one or the other but I need to be consistent in what I do.

 

[greg334]

In the banking industry, they are required to keep records for a while (over 3 years), T-chek should fall under the same rules.

I don't see the big deal, get into the habit of printing them off every month or so, or incorporating them into your software (old cut and paste method) or OMG you can actually have a program like Quick Books download them for you - amazing world we live in.

The key is the word habit, make it a habit.

 

[layoutshooter]

We have all of our records on a hard drive, a flash drive AND, at the end of the year, we put everything on a DVD and keep that in the gun safe. Paper files are keep in a box. We keep what little paper we have just to have it. You can't read them little receipts after a while.

 

[pjjjjj]

Why opt out of getting statements than?

That's what I have been wondering for years actually.
'They' are really pushing it, and trying to make it seem like it's all for 'you'.. but as with everything else, they only have their own financial interests at heart.
Either way you do it.. it can also be done both ways.. get it in the mail, and scan it onto computer.. get it in email and print a paper copy..
Some places will offer some kind of a bonus for switching to 'paperless'.. like a one-time-payment of $10 or something..
And the workers are trained to always asked.. would you like to start receiving your bills paperlessly? (Um, no, I wouldn't actually).
They make it seem like they care about 'green' and push the green thing.. less paper in the landfills..
Their efforts must not be working too well, because now I am starting to see monthly charges added on for the privilege of receiving a paper bill!
So now.. if they're going to make me PAY for it, I'm going to go paperless. That one worked! The 'Bell' bill now charges $2/month to receive it in the mail. I believe the bank also now charges if I want to receive paper statements.
I have only been hesitant because I am afraid that when I'm rushed and busy, I won't remember to even open the bill.. or print it, enter it, whatever... and I've also not wanted to cave into something that was obviously for THEIR benefit when they're selling it as MY benefit.
When you think about it tho, if one can keep up with the (computer) filing, and scanning and backing up.. and have everything organized really well on your drive to access easily when required.. at least the little chits won't fade to obliteration!

 

[Turtle]

Why opt out of getting statements than?

Because it helps save the bank some money.

I wonder if you could go back in three years and get the back three years and get a statement?

Section 4-406 of the Uniform Commercial Code requires banks to return or make available to customers the items paid through their accounts. This is to give customers sufficient information to identify the items paid through their accounts. If items such as checks are not returned to the customer or if the items are destroyed (which banks are allowed to do), banks are required to "maintain the capacity to furnish legible copies of the items until the expiration of seven years after receipt of the items."


You can download them and store them with your tax records for that year, if you like, or you can simply leave them stored on the bank's servers, and then obtain them from the bank if you ever need them.

 

[Fkatz]

Hi All.

What is happening is they are really forcing the paperless , and electronic issue. it saves them and you in the long run $$$$$$$$$.

The true only way of being able to deep up with is to have someone due your bookkeeping with an Electronic Document Manager.

1. you accumulate all your monthly receipts send them to your accountant or bookkeeper who in turn has a electronic documnet manager that he/she/CO. that scans your information in and returns your receipts back to you when finished. Use a bookkeeper who does not keep your information until your tax return is completed for that year Within the reciepts, Pilot, some T/A/s, and NYm, IL, Ohio, IN, Pa, and some other states use thermal paper for there receipts, THEY FADE OUT BY SITTING IN A WARM TRUCK IN A BOX, FLOOR OR ANYWHERE, jUST MAKE A COPY OF THESE WHEN YOU HAVE TIME AND SEND THEM WHEN YOU SEND YOUR OTHER RECEIPTS

2 If you use a tax and accountant Professional most of them are switching to Paperless office.

your tax returns, all your reciepts, and notes when you speak to them are kept on electronic media and can be pulled down at anytime in case of an audit. if you cannot find your original copies. that would have to be taken to the audit.

If you are able to keep up with the scanning, and listing fine, but if you cannot let a professional do it for you.

If you were at the Expo a couple of weeks ago, you picked up some borchures, and informaton from my Table, WE ARE TOTALLY PAPERLESS

iF YOU HAVE ANY QUESTIONS PLEASE DO NOT HESITATE TO ASK

Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934


Providing Professional Accounting Services and Income Tax Preparation

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.