You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out.
The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. Table 3 contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.
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Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you later file an amended return. |
Employment taxes
If you have employees, you must keep all employment tax records for at least 4 years after
the date the tax becomes due or is paid, whichever is later. For more information about
recordkeeping for employment taxes, see
Publication 15.
Assets
Keep records relating to property until the period of limitations expires for the year in
which you dispose of the property in a taxable disposition. You must keep these records to
figure any depreciation, amortization, or depletion deduction, and to figure your basis for
computing gain or loss when you sell or otherwise dispose of the property.
Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition.
Records for nontax purposes
When your records are no longer needed for tax purposes, do not discard them until you check
to see if you have to keep them longer for other purposes. For example, your insurance
company or creditors may require you to keep them longer than the IRS does.
Information courtesy of the Internal Revenue Service.
Recordkeeping:
Why Keep Records?
Kinds of Records To Keep
How Long To Keep Records
Sample Record System
