Record Retention Guide

How long should I save tax records?

Federal law requires that you keep copies of your tax returns and supporting documents for three years. This “three-year law” causes many people to think they are safe to throw-out or delete documents after this time period.

The IRS may go back up to six years in an audit if they believe there was significantly under-reported income or an indication of fraud. With this in mind the following guidelines for record retention are recommended.

Be Aware! In today’s world identity theft is a serious threat and it is important to take precautions to avoid it. When disposing of records that are no longer necessary you should be certain to shred them, not just rip them or throw them in the trash. If you have any records on your computer and must change computers or hard-drives, for any reason, be sure that the disk is wiped clean before disposal.

Personal Records

1 Year

  • Bank Statements
  • Paycheck Stubs
  • Canceled checks
  • Monthly and quarterly mutual fund & retirement contribution statements

    • 3 Years

  • Credit Card Statements
  • Medical Bills
  • Utility Records
  • Expired Insurance Policies

    • 6 Years

  • Tax Return Supporting Documents
  • Accident Reports and Claims
  • Tax-related Medical Bills
  • Property Records
  • Property Improvement Receipts
  • Sales Receipts
  • Wage Garnishments
  • Income Tax Returns
  • Income Tax Payment Checks
  • Any Tax-Related Bills

    • Forever

  • CPA Audit Reports (if applicable)
  • Legal Records (divorce, etc.)
  • Important Correspondence
  • Investment Trade Confirmations
  • Retirement and Pension Records

    • Business Records

    1 Year

  • Client & Vendor Correspondence
  • Duplicate Deposit Slips
  • Purchase Orders (other than Purchasing Department copy)
  • Receiving & Shipping Sheets
  • Requisitions
  • Stenographer's Notebooks
  • Forms for Stockroom Withdrawal

    • 3 Years

  • Terminated Employee Personnel
  • Applications for Employment
  • Expired Insurance Policies
  • General Correspondence
  • Internal Reports (including Audit Reports)
  • Petty Cash Receipts
  • Physical Inventory Tags
  • Employee Savings Bond Registration Records
  • Hourly Employee Time Cards

    • 6 Years

  • Expense Analysis and Expense Distribution Schedules
  • Cancelled Checks
  • Customer Invoices
  • Employment Tax Records
  • Payroll Records and Summaries, including payment to pensioners
  • Accident Reports & Claims
  • Accounts Payable Ledgers and Schedules
  • Accounts Receivable Ledgers and Schedules
  • Bank Statements and Reconciliations
  • Voucher Register, Schedules
  • Cancelled Stock and Bond Certificates
  • Expired Contracts, Leases
  • Records for Expired Options
  • Product, Material and Supply Inventories
  • Records for Travel and Entertainment Expenses
  • Receivable Ledgers, Schedules
  • Cost Ledgers
  • Purchase Order Copies from Purchasing Department
  • Sales Records
  • Subsidiary Ledgers
  • Time Books
  • Vendor & Employee Payment

    • Forever

    In many cases federal guidelines don’t require you to keep tax records forever, however there will be other reasons you'll want to retain these documents indefinitely.

  • CPA/Accountant Audit Reports
  • Deeds
  • Depreciation Schedules
  • Cancelled Checks for Important Payments, including tax payments
  • Cash Books, Charts of Accounts
  • Current Contracts and Leases
  • Corporate Documents (incorporation, charter, by-laws, etc.)
  • Documents substantiating fixed asset additions
  • Year End Financial Statements
  • General and Private Ledgers, Year End Trial Balances
  • Insurance Records, Current Accident Reports, Claims, Policies
  • Investment Trade Confirmations
  • IRS Revenue Agents' Reports
  • Journals
  • Legal Records, Correspondence and Other Important Matters
  • Minute Books of Directors and Stockholders
  • Mortgages
  • Bills of Sale
  • Property Appraisals by Outside Appraisers
  • Property Records
  • Retirement and Pension Records
  • Tax Returns and Worksheets
  • Trademark and Patent Registrations

    • Other Records You Should Keep

  • Current records for your autos, trucks, boats, etc.
  • Credit card receipts for big purchases
  • Credit card receipts for disputed purchases or credits
  • Current insurance policies
  • Mortgages, deeds, leases (it is a good idea to retain these for 6 years beyond the agreement)
  • Sales receipts for items with a warranty
  • Stock & Bond Records (retain for 6 years after selling)
  • Current Product Warranties & Instructions