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.
Click here for IRS small business and self-employed recordkeeping guidelines.
Generally, follow these recommended periods for various documents:
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.