
How Long to Keep Records
How Long Do I Keep Records
Our standard answers…
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3 years is the Statute of Limitations for audit purposes (from the due date of the return or the filing, whichever is later).
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4 years for Employee Records
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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).
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7 years for Loss from Worthless Securities or Bad Debt deductions
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Fraud is forever.
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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 (Rules are different depending....)