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…
IRS – How Long Do I Keep Records (Rules are different depending….)