How Long to Keep Records

How Long Do I Keep Records

Our standard answers…

3 years is the Statute of Limitations for audit purposes (from the due date of the return or the filing, whichever is later).
4 years for Employee Records
6 years if there is a 25% understatement of income (accidental, misinterpretation of tax law, bookkeeping error, involved in one of those too good to be true tax shelters).
7 years for Loss from Worthless Securities or Bad Debt deductions
Fraud is forever.
If you still have the asset, you need the records. (i.e. You sell a building you've owned for the last 20 years. The sale is within the Statute of Limitations. Anything related to that sale must be provable - original cost, improvements).

The best information is available here by clicking on this IRS information page…