Document Retention Periods
Tax returns can generally be audited for up to three years after filing and up to six years if the IRS
suspects underreported income. It is wise to keep tax records at least seven years after a return is
filed. Requirements for records kept electronically are the same as for paper records.
Generally, follow these recommended periods for various documents: Individual Records Retention Period
- Tax Returns (uncomplicated) 7 years
- Tax Returns (all others) Permanent
- W-2s 7 years
- 1099s 7 years
- Cancelled checks supporting Tax deductions 7 years
- Bank Deposit Slips 7 years
- Bank Statements 7 years
- Charitable Contribution Documentation 7 years
- Credit Card Statements 7 years
- Receipts, Diaries, Logs pertaining to Tax Return 7 years
- Investment Purchase and Sales Slip Ownership period + 7 years
- Dividend Reinvestment Records Ownership period + 7 years
- Year-end Brokerage Statements Ownership period + 7 years
- Mutual Fund Annual Statements Ownership period + 7 years
- Investment Property Purchase Documents Ownership period + 7 years
- Home Purchase Documents Ownership period + 7 years
- Home Improvement Receipts & Cancelled Checks Ownership period + 7 years
- Home Repair Receipts and Cancelled Checks Warranty period for item
- Retirement Plan Annual Reports Permanent
- IRA Annual Reports Permanent
- IRA Nondeductible Contributions Form 8606 Permanent
- Insurance Policy Life of policy + 3 years¹
- Divorce Documents Permanent
- Loans Term of Loan + 7 years
- Estate Planning Documents Permanent
¹Check with your agent. Liability for prior years can vary. BUSINESS Accounting Records Retention Period
- Accounts Payable 7 years
- Accounts Receivable 7 years
- Audit Reports Permanent
- Chart of Accounts Permanent
- Depreciation Schedules Permanent
- Expense Records 7 years
- Financial Statements (annual) Permanent
- Fixed Asset Purchases Permanent
- General Ledger Permanent
- Inventory Records 7 years¹
- Loan Payment Schedules 7 years
- Purchase Orders (1 copy) 7 years
- Sales Records 7 years
- Tax Returns Permanent
Bank Records Retention Period
- Bank Reconciliations 2 years
- Bank Statements 7 years
- Cancelled Checks 7 years²
- Electronic Payment Records 7 years
Corporate Records Retention Period
- Board Minutes Permanent
- Bylaws Permanent
- Business Licenses Permanent
- Contracts – Major Permanent
- Contracts – Minor Life + 4 years
- Insurance Polices Life + 3 years³
- Leases / Mortgages Permanent
- Patents / Trademarks Permanent
- Shareholder Records Permanent
- Stock Registers Permanent
- Stock Transactions Permanent
Employee Records Retention Period
- Benefit Plans Permanent
- Employee Files (ex-employees) 7 years (4)
- Employee Applications 3 years
- Employee Taxes 7 years
- Payroll Records 7 years
- Pension/Profit Sharing Plans Permanent
Real Property Record Retention Period
- Construction Records Permanent
- Leasehold Improvements Permanent
- Lease Payment Records Life + 4 years
- Real Estate Purchases Permanent
¹Permanent for LIFO System.
²Permanent for real estate purchases.
³Check with your agent. Liability for prior years can vary.
4Or statute of limitations for employee lawsuits.
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