Storing Tax Records: How Long Is Enough? Federal law requires that you keep copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe that they are safe as long as they keep their documents for this period of time.

However, if the IRS believes you are materially underreporting (by 25 percent or more), or believes there may be indications of fraud, you can go back six years in an audit. To be safe, follow the guidelines below.

Business records to keep… Personal records to keep…
1 year 1 year
3 year 3 year
6 year 6 year
Always Always
Special circumstances

Create a backup set of logs and store them electronically. Maintaining a backup set of records, including, for example, bank statements, tax returns, insurance policies, etc., is easier than ever now that many financial institutions provide electronic statements and documents, and much information finance is available on the internet. .

Even if the original records are provided only on paper, they can be scanned and converted to a digital format. Once the documents are in electronic format, taxpayers can download them to a backup storage device, such as an external hard drive, or burn them to a CD or DVD (don’t forget to label it).

You can also consider online backup, which is the only way to ensure data is fully protected. With online backup, your files are stored in another region of the country, so if a hurricane or other natural disaster strikes, your documents remain safe.

Caution: Identity theft is a serious threat in today’s world and it is important to take every precaution to avoid it. After you no longer need to keep your tax records, financial statements, or any other documents with your personal information, you should dispose of these records by shredding them, not just throwing them in the trash.

Documentos comerciales para conservar durante un año

  • Correspondence with Clients and Suppliers
  • Duplicate deposit slips
  • Purchase orders (apart from the copy of the Purchasing Department)
  • Receipt sheets
  • requisitions
  • Stenographer’s notebooks
  • Warehouse Withdrawal Forms

Business documents to keep for three years

  • Employee personnel records (after termination)
  • Job application
  • Expired insurance policies
  • General correspondence
  • Internal Audit Reports
  • Internal reports
  • Petty cash vouchers
  • Physical inventory labels
  • Savings Bond Registry Employee Records
  • Time cards for hourly employees

Business documents to keep for six years

  • Accident reports, claims
  • Accounts payable ledgers and schedules
  • Accounts receivable ledgers and schedules
  • Bank statements and reconciliations
  • Canceled checks
  • Canceled stock and bond certificates
  • Employment tax records
  • Expense analysis and expense distribution schedules
  • Expired Contracts, Leases
  • Expired Option Records
  • Inventories of Products, Materials, Supplies
  • Invoices to Clients
  • Notes receivable ledgers, schedules
  • Payroll records and summaries, including payment to pensioners
  • Plant cost books
  • Purchasing Department Copies of Purchase Orders
  • Sales records
  • Auxiliary books
  • Time books
  • Travel and entertainment records
  • Proof of Payments to Suppliers, Employees, etc.
  • Registration of Vouchers, Schedules

Business records to keep forever

While federal guidelines don’t require you to keep tax records “forever,” in many cases there will be other reasons why you’ll want to keep these documents indefinitely.

  • Certified Public Accountants/Accountants Audit Reports
  • Checks Canceled for Important Payments (especially tax payments)
  • Cash books, charts of accounts
  • Contracts, Current Leases
  • Corporate documents (incorporation, articles of incorporation, bylaws, etc.)
  • Documents that justify the additions of fixed assets
  • Wanderings
  • Depreciation schedules
  • Financial Statements (End of Year)
  • General and private ledgers, year-end trial balances
  • Insurance records, current accident reports, claims, policies
  • Investment trade confirmations
  • IRS Revenue Agent Reports
  • Journals
  • Legal records, correspondence and other important matters
  • Minute Books of Directors and Shareholders
  • Mortgages, Bills of Sale
  • Property appraisals by outside appraisers
  • Property records
  • Retirement and Pension Records
  • Tax returns and worksheets
  • Trademark and Patent Registrations

Personal documents to keep for one year

  • Bank statements
  • Paycheck stubs (reconcile with W-2)
  • canceled checks
  • Monthly and quarterly statements of mutual funds and retirement contributions (reconcile with year-end statement)

Personal documents to keep for three years

  • Credit card statements
  • Medical bills (in case of insurance disputes)
  • Utility Records
  • Expired insurance policies

Personal documents to keep for six years

  • Supporting documents for tax returns
  • Accident reports and claims
  • Medical bills (if tax related)
  • Property Records/Improvement Receipts
  • Sales Receipts
  • Wage garnishments
  • Other tax-related bills

Personal records to keep forever

  • CPA Audit Reports
  • Legal Records
  • Important correspondence
  • Income tax return
  • Income Tax Payment Checks
  • Investment trade confirmations
  • Retirement and Pension Records

Special circumstances

  • Car records (keep until car is sold)
  • Credit card receipts (keep with your credit card statement)
  • Insurance policies (maintain during the term of the policy)
  • Mortgages / Deeds / Leases (keep 6 years beyond the contract)
  • Pay stubs (keep these until reconciled with your W-2)
  • Property records/improvement receipts (keep until property is sold)
  • Sales receipts (keep for the duration of the warranty)
  • Stock and bond records (retain for 6 years after sale)
  • Guarantees and instructions (maintain during the useful life of the product)
  • O after invoices (save until payment is verified on the next invoice)
  • Depreciation schedules and other capital asset records (keep for 3 years after the tax life of the asset)