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How long to keep tax and business records

Keep records long enough to support the return, prove asset basis and satisfy employment, legal and contractual requirements. There is no single retention period for every document.

The general federal rule

Many income-tax records are kept for at least three years. Longer periods apply in some circumstances, including substantial omitted income, certain loss claims, unfiled returns or fraud. Keep filed returns as a reference.

Records that need longer attention

Retain asset purchase, improvement and depreciation records through disposal and the applicable limitation period afterward. Keep ownership and shareholder basis records while they remain relevant. Employment-tax records generally need at least four years.

Create a usable archive

Store returns, filing confirmations, statements, invoices and receipts by tax year. Keep backups, restrict access and make sure electronic records can be read. Consider insurance, financing and state-law requirements before destroying anything.

Before you delete

Do not destroy records connected to an unresolved notice, audit, claim or legal matter. Ask about the specific record type and tax year first.

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Related guidance

Share tax documents securely

Use the firm’s approved client portal for tax records containing Social Security numbers, account details or financial statements.

Bookkeeping for small businesses

Monthly or quarterly bookkeeping that makes your cash position, operating results and tax records easier to understand.

§ FAQ

Questions we hear about keeping records.

How long should I keep my tax returns?

Keep copies of filed federal and state returns as a reference. The supporting records behind them, such as W-2s, 1099s, 1098s and receipts for deductible expenses, generally need to be kept for 3 years from the date you filed; 6 years if income was substantially underreported; 7 years if you claim a bad-debt or worthless-securities deduction; and indefinitely if no return was filed.

How long can the IRS examine my tax return?

The IRS can examine most returns for three years after filing. That window extends to six years if you omit more than 25% of your gross income, and there is no statute of limitations at all if you never file or file a fraudulent return, meaning the IRS can review those years indefinitely.

How long should a business keep payroll and financial records?

Keep employment tax records, such as payroll registers and timecards, for at least 4 years after the tax is due or paid, whichever is later. Bank statements, canceled checks and accounts payable and receivable ledgers that support a return generally follow the 3-year rule, or longer if an extended period applies. Formation documents like articles of incorporation, corporate minutes, bylaws, annual reports, and retirement plan documents should be kept forever.

How long do I keep records for my home and investments?

Keep records of a home purchase and its improvements until the period of limitations closes for the year you sell the home, generally 3 years after you file that return. Records of stock and mutual fund purchases follow the same rule for the year the shares are sold, and IRA contribution statements on Form 8606 should be kept until the account is fully withdrawn.

How long should I keep bank and credit card statements?

Keep bank statements and canceled checks that support your return for at least 3 years from filing, and longer if an extended period applies. Credit card statements that support something on your return follow the same rule; others can be kept for as long as you need them.
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