I'm trying to reduce clutter of tax returns from previous years, after having scanned in several year's worth.
On the IRS's "How long should I keep records" web page, one of the exceptions to the three year rule is if you file a fraudulent return, in which case you need to keep records indefinitely. I have never filed a fraudulent return, but can the IRS say for example that they suspect my 1986 return is fraudulent and ask for supporting documentation? If that's the case, then it would seem everyone would need to keep returns forever. Please advise.
Also, the web page says that an insurance company might require you to keep tax records longer than the IRS does. Under what circumstances would an insurance company request your tax return?
Thank you.