Once completed, your tax return and its supporting documentation need to be kept for up to seven years. Most businesses keep their actual returns indefinitely. Consult your tax advisor for retention advice for your situation. Seven years' worth of tax returns and documentation can take up a lot of space in your office or home office. Here are some tips on the most effective ways to organize and store your tax archives:

• Use Hanging Files - I always prefer hanging files over manila folders, because they stay upright and protect your files, slide effortlessly for quick access, and are easy to label. Manila folders can be a great addition to your hanging files if you need to sub-divide the contents. If regular hanging file folders are not large enough, you can purchase box-bottom files, which are shaped more like a "U" than a "V". You can get them in different widths including 1", 2", 3" and 4".
  
  
• Keep Files Together - Keep all files relating to a given tax year together in one spot. This makes it easy to find what you need when you need it. Often times, tax archives are only referenced in the event of an audit. If you are audited, it is much less stressful when everything you need is all in one place.
  
  
• Label - Clearly label all files, including the file drawer, portable storage box, or bankers box where you are storing the files. In addition to the description of the contents, you should include a destroy after date. This will make it easy to know when the contents can be shredded without having to sort through them again years from now.
  
  
• Store Out of the Way - Don't store your tax archives in your "prime real estate". What I mean by that is store these files out of the way somewhere. It could be in the least accessible file drawer or cabinet in your office, or maybe even outside of your office in a storage room or offsite storage facility. This will ensure that you are not using your valuable space for files that you access infrequently.