Guide
Records to keep.
How long to hold on to a return and the paperwork behind it comes down to how long the IRS has to ask questions about it. Here is the general picture, based on IRS guidelines.
The general rule
Keep a return and its supporting documents for at least three years from the date you filed — the standard window the IRS has to review a return. Several situations extend that, and a couple call for keeping records permanently.
How long to keep what
| Record | Keep for | Why |
|---|---|---|
| Filed tax returns | Permanently | They’re small, and they’re the reference point for prior-year figures, carryovers, and basis. Most practices keep every return indefinitely. |
| Supporting documents (W-2s, 1099s, receipts, statements, logs) | 3 years | The normal period for the IRS to assess additional tax on a filed return. |
| Records when income was under-reported by more than 25% | 6 years | The assessment window is longer when a substantial amount of income is left off. |
| Records behind a claim for a loss from worthless securities or a bad debt | 7 years | These claims carry a longer look-back. |
| Employment tax records (if you have employees) | At least 4 years | Four years after the tax is due or paid, whichever is later. |
| Property and asset records (purchase, improvements, depreciation, sale) | Until 3 years after you sell | You need the full history to figure gain or loss in the year of sale — then the normal 3-year window runs from that return. |
| Any year you didn’t file, or filed a fraudulent return | Permanently | There’s no time limit for the IRS to act. |
A few practical notes
- Other reasons to keep records longer. Lenders, insurers, and some state programs have their own retention expectations that can outlast the tax rules.
- Digital copies are fine. The IRS accepts legible electronic records. Back them up, and keep them organized by tax year.
- When you do discard paper, shred anything with a Social Security number, account number, or date of birth.
This is general guidance, not advice for your situation. If you’re deciding whether it’s safe to let something go — especially business, property, or older records — check with us first.