How Long Do I Need To Keep Documents for Tax Purposes?
There is no simple answer for this question so we provided a chart below. Certain documents need to be kept permanently while others should be kept until the statute of limitations expires. The statute of limitations for federal tax returns is usually 3 (three) years from the date the return was due or filed, or two years from the date the tax was paid, whichever is later. The statute of limitations is usually longer for state tax returns.
The federal 3 (three) year rule has some EXCEPTIONS:
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The assessment period is extended to 6 (six) years instead of three years if you do not report income that you should report, and it is more than 25% of the gross income shown on your tax return.
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There is no time frame for the IRS to access tax and tax records must be kept indefinitely if you do NOT file a tax return, OR you file a fraudulent tax return.
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You must keep records for 7 (seven) years if you file a claim for a loss from worthless securities or bad debt deduction.
NOTES: Tax returns that are filed BEFORE the due date are considered to be filed on the due date.
Can I Store Documents Electronically?
Yes, you can either
keep a physical paper copy or an electronic copy such a PDF
or image file (examples: JPG, GIF, TIFF). Be aware that many documents
are printed on thermal paper and will fade over time. We highly suggest
you make a photocopy of these documents or store them electronically.
Below is a chart showing the documents you should keep and the time period to retain the documents:
| Documents Retention For Individuals | |
| Type of Document | Retention Period |
| Income Tax Returns | 7 Years |
| Gift and Estate Tax Returns | Permanently |
| W-2's, 1095's, 1098's, 1099's, and K-1's | 7 Years |
| Bank Statements and Cancelled Checks | 7 Years |
| Credit Card Statements and Receipts | 7 Years |
| Charitable Contribution Documentation | 7 Years |
| Mileage Logs | 7 Years |
| Receipts for Items on Tax Return | 7 Years |
| Investment Purchases and Sales | Period of Ownership + 7 Years AFTER Sale |
| Dividend Reinvestment Records | Period of Ownership + 7 Years AFTER Sale |
| Year-End Brokerage Statements | Period of Ownership + 7 Years AFTER Sale |
| Mutual Fund Annual Statements | Period of Ownership + 7 Years AFTER Sale |
| Real Estate Purchases | Period of Ownership + 7 Years AFTER Sale |
| Home Improvement Receipts and Checks | Period of Ownership + 7 Years AFTER Sale |
| IRA and Other Retirement Plan Annual Forms 5498 | Permanently |
| IRA Nondeductible Contributions - Form 8606 | Permanently |
| Contributions to Roth IRAs | Period of Ownership + 7 Years AFTER Final Withdrawal from Roth IRA |
| Insurance Policies | Life of Policy + 3 Years |
| Loans | Term of Loan + 7 Years |
| Depreciation, Amortization, and Depletion Schedules | Period of Ownership + 7 Years AFTER Sale |
| Credits that Affect Basis of Property such as Energy Credits and Homebuyer Credits | Period of Ownership + 7 Years AFTER Sale |
| Records of Nontaxable Income | 7 Years |
| Birth Certificates, Death Certificates, Divorce and Separation Papers, Voter Registration, Selective Service Registration, Passports, Social Security Cards, Marriage Licenses, Wills, Trusts, Deeds for Real Estate, Mortgage Papers, Vehicle Titles, Adoption Papers | Permanently |
| Documents Retention For Businesses | |
| Type of Document | Retention Period |
| Income Tax Returns | Permanently |
| Sales and Use Tax Returns | 7 Years |
| Bank Statements, Bank Deposit Slips, and Cancelled Checks | 7 Years |
| Credit Card Statements and Receipts | 7 Years |
| Charitable Contribution Documentation | 7 Years |
| Mileage Logs | 7 Years |
| Receipts for Items on Tax Return | 7 Years |
| Expense Records | 7 Years |
| Investment Purchases and Sales | Period of Ownership + 7 Years AFTER Sale |
| Real Estate Purchases | Period of Ownership + 7 Years AFTER Sale |
| Loans | Term of Loan + 7 Years |
| Depreciation, Amortization, and Depletion Schedules | Period of Ownership + 7 Years AFTER Sale |
| Credits that Affect Basis of Property | Period of Ownership + 7 Years AFTER Sale |
| Payroll Tax Returns | 7 Years |
| W-2's, W-3's, 1096's and 1099's | 7 Years |
| Employee Files | 7 Years AFTER Termination |
| Employee Applications | 3 Years |
| Forms W-4 | While in Effect + 4 Years |
| Forms I-9 | 3 Years After Hire OR 1 Year After Termination, Whichever is LATER |
| Time Cards | 4 Years |
| Payroll Journals | 4 Years |
| Employee Garnishments | 5 Years |
| Retirement & Profit Sharing Plan Agreements | Permanently |
| Employee Benefit Plans | Permanently |
| Engagement Letters | Length of Engagement + 3 Years |
| Leases / Mortgages | Permanently |
| Patents / Trademarks | Permanently |
| Insurance Policies | Life of Policy + 3 Years |
| Accounts Payable | 7 Years |
| Accounts Receivable | 7 Years |
| Audit Reports | Permanently |
| Chart of Accounts | Permanently |
| Financial Statements - Annual | Permanently |
| Fixed Asset Purchases | Permanently |
| General Ledger | Permanently |
| Inventory Records | 7 Years OR Permanently if Using LIFO Method |
| Purchase Orders | Permanently |
| Sales Records | Permanently |
| Shareholder / Member Records | Permanently |
| Stock Registers / Membership Registers | Permanently |
| Annual Minutes | Permanently |
| Bylaws | Permanently |
| Business Licenses / Occupational Licenses | Permanently |
| Contracts - Major | Life of Contract + 4 Years |
| Contracts - Minor | Life of Contract + 3 Years |
