<p>It is supposed to be a 'snapshot' of your assets of that day. You can't deduct expenses you know are going out in the near future (like my Ds wisdom teeth removal - never though to 'time' that for before FAFSA) so why show money you know is coming in if it is not here yet.</p>
<p>Remember that for most families, their reportable assets don't exceed the FAFSA parental asset protection allowance (typically about 45 to 50K for a two parent family, but depends on age of older parent). So, for most, there is no contribution to the EFC from parental assets. Profile calculates differently, but has an emergency reserve allowance, and an education savings allowance.</p>
<p>So for those with modest reportable assets, while you want to get the numbers right, it probably isn't worth agonizing over pennies.</p>
<p>So no need to break into my piggy bank then ;)</p>
<p>Like others, I took it to literally mean the balance at the time I was filling out the form; therefore I waited for the "big" expenses to clear first. I also have a file set up for all the documentation where I got the numbers from (401k statement; IRA statement; etc.).</p>
<p>In general, there is a 6 year statute of limitations for criminal prosecution for tax fraud. </p>
<p>In general, there is a 3 year statute of limitations for IRS assessments to collect back taxes they claim are due; however that 3 years can be waived in cases of fraud. The burden of proof is on the IRS to prove fraud in order to have the statute waived. </p>
<p>See:
<a href="http://www.irs.gov/irm/part25/ch01s08.html#d0e2769%5B/url%5D">http://www.irs.gov/irm/part25/ch01s08.html#d0e2769</a>
<a href="http://www.taxlawcenter.com/g0076000.htm%5B/url%5D">http://www.taxlawcenter.com/g0076000.htm</a>
<a href="http://articles.chooselaw.com/general/view/Proof-Of-Tax-Fraud.209.html%5B/url%5D">http://articles.chooselaw.com/general/view/Proof-Of-Tax-Fraud.209.html</a></p>
<p>Rule #1: Don't rely on public message boards for legal advice, especially when it comes to your taxes.</p>
<p>That's great news. There is a six year statute of limitations on going to jail for tax fraud. But still no statute of limitations for being assessed for the taxes, penalties and interest.</p>
<p>I agree about the checks written but have not cleared. That money is gone. Others might not agree with this thought but we still have another $4000 to pay for "this year's" tutition to the TMS. I don't think those dollars should be figured in the pot as to what's available for next year.</p>
<p>
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We too were told by several sources that 7 years was the requirement for keeping tax info.
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This is the advice that is often given. It is rarely wrong.</p>