Helpful Information
Federal Tax Record Retention Basics
While the IRS generally requires you to retain tax returns and related documents for three years, more complex scenarios extend your obligations:
- If your income is under-reported by 25% or more, the IRS may audit up to six years back.
If fraud is suspected, or if a return was never filed, there is no statute of limitations—keep records indefinitely
Helpful Information
Federal Tax Record Retention Basics
While the IRS generally requires you to retain tax returns and related documents for three years, more complex scenarios extend your obligations:
- If your income is under-reported by 25% or more, the IRS may audit up to six years back.
- If fraud is suspected, or if a return was never filed, there is no statute of limitations—keep records indefinitely.
Helpful Information
How Long to Keep Business Documents
Document Type | Recommended Retention Period |
Customer correspondence, duplicate deposit slips, purchase orders (non–purchasing copy), receiving sheets, stockroom forms, requisitions | 1 year |
Employee records, employment applications, expired insurance policies, internal reports, petty cash vouchers | 3 years |
Payroll summaries, bank statements, accounts payable/receivable, invoices, tax filings, inventory records, travel and entertainment logs | 6 years |
Legal documents (e.g., contracts, lease agreements), canceled stock and bond certificates, wills, accident claims, employment tax records | Permanently / Indefinitely |
