Tax Resources
Record Retention Guide
How long to hold onto personal and business tax records, based on IRS guidance and best practice.
Record Retention Guide
Keeping tidy, well-organized records makes tax time easier and protects you in the event of an IRS notice, audit, insurance claim, or legal matter. Below are the retention periods our office recommends for both personal and business records, based on IRS guidance and generally accepted best practices.
General rule: The IRS statute of limitations for most returns is 3 years from the filing date. If you underreport income by more than 25%, that window extends to 6 years. There is no statute of limitations on returns that are never filed or that involve fraud — keep those records permanently.
Personal Records
| Record | How Long to Keep |
|---|---|
| Tax returns (federal & state) | Permanently |
| W-2s, 1099s, and other income statements | 7 years |
| Bank statements & canceled checks | 7 years |
| Credit card statements (unless needed for a deduction) | 3 years |
| Charitable contribution receipts | 7 years |
| Medical bills & Health Savings Account records | 7 years |
| Investment purchase/sale confirmations | Until 7 years after you sell |
| Retirement plan (IRA, 401(k)) contribution records | Permanently |
| Property purchase, improvement & sale records | Until 7 years after you sell |
| Home mortgage documents | Until 7 years after payoff |
| Loan agreements & payoff statements | 7 years after payoff |
| Insurance policies | Life of the policy + 3 years |
| Marriage, divorce, birth, death & adoption certificates | Permanently |
| Wills, trusts & powers of attorney | Permanently |
| Social Security card & records | Permanently |
| Estate planning documents | Permanently |
Business Records
| Record | How Long to Keep |
|---|---|
| Business tax returns | Permanently |
| Payroll tax returns & records | 7 years |
| Employee earnings records | Permanently |
| Employment applications | 3 years |
| I-9 forms | 3 years after hire or 1 year after termination, whichever is later |
| Bank statements, deposit slips & canceled checks | 7 years |
| Invoices (sales & purchases) | 7 years |
| Accounts payable & receivable ledgers | 7 years |
| General ledger & journals | Permanently |
| Depreciation schedules | Life of the asset + 7 years |
| Fixed asset purchase records | Life of the asset + 7 years |
| Contracts & leases (expired) | 7 years after expiration |
| Contracts & leases (in effect) | Permanently |
| Corporate/LLC formation documents | Permanently |
| Corporate minutes & bylaws | Permanently |
| Stock records & shareholder ledgers | Permanently |
| Business insurance policies | Life of the policy + 3 years |
| Trademarks, patents & copyrights | Permanently |
| Audit reports (internal & external) | Permanently |
A Few Practical Tips
- Go digital. Scan paper records and store them in a secure, backed-up location (encrypted cloud storage is ideal). The IRS accepts electronic copies as long as they are legible.
- Organize by tax year. Create a folder for each tax year that includes the return, all supporting documents, and copies of any correspondence with taxing authorities.
- Shred, don't just toss. When it is finally time to dispose of documents that contain personal information, shred them.
- When in doubt, keep it longer. Storage is cheap — an unresolved IRS notice or lost basis record is expensive.
Have questions about a specific document or situation? Contact our office and we'll help you decide what to keep and what to safely discard.