The short answer
For most people, keep tax records for 3 years from the date you filed. Keep them longer in some cases: 4 years for employment tax records, 6 years if you left out more than 25% of your income, 7 years for a worthless securities or bad debt deduction, and indefinitely if you didn't file or filed a fraudulent return.
The IRS time limits
| Situation | Keep records for |
|---|---|
| Most returns | Keep records for3 years from the date you filed |
| You file a claim for credit or refund after filing | Keep records for3 years from filing, or 2 years from paying the tax, whichever is later |
| You claim a loss from worthless securities or a bad debt deduction | Keep records for7 years |
| You didn't report income that is more than 25% of the gross income on your return | Keep records for6 years |
| You didn't file a return | Keep records forIndefinitely |
| You filed a fraudulent return | Keep records forIndefinitely |
| Employment tax records (for employers) | Keep records forAt least 4 years after the tax is due or paid, whichever is later |
Records worth keeping longer
Some records matter until you sell or dispose of something, and then for the time limits above:
- Home purchase and improvement records
- Investment purchase records
- Records for business equipment and property
Records in a box you can't make sense of? Our bookkeeping service can organize them.
Related service: Bookkeeping in Shelby
What to keep
- Copies of your filed returns
- W-2s, 1099s and other income records
- Receipts and statements for deductions and credits
- Business income and expense records
- Payroll records, if you have employees
Storing them safely
Scanned copies are fine if they're clear and complete. Keep backups, and store anything with Social Security numbers securely. Shred what you no longer need.
Official sources
This guide is general information, not advice for your situation. Tax rules change; check with us or the official source before acting.