How Long Do I Keep
Records
Our standard answers…
1. 3 years is the Statute of Limitations for audit purposes (from the due date of the return or the filing, whichever is later).
3. 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).
4. 7 years for Loss from Worthless Securities or Bad Debt deductions
5. Fraud is forever.
6.
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…
IRS - How Long Do I Keep Records