Tax Center / Record retention
Record retention guide.
How long should you keep tax returns, receipts, and financial records? The answer depends on the document; the periods below are the general guidelines we point clients to, so you can hold on to what you need and clear out what you don't with confidence.
Individual tax records
Keep the documents that support a return (W-2s, 1099s, receipts, and records for deductions and credits) for at least three years from the date you filed, which covers the general IRS assessment window. Stretch that to six or seven years if you claim a loss from worthless securities or a bad debt, or in situations where income may have been substantially underreported. Keep copies of the filed returns themselves indefinitely.
Business records
Keep income and expense documentation, bank and credit-card statements, invoices, and the records that back up what's on the return for about seven years. Employment tax records should be kept for at least four years after the tax is due or paid. Ledgers, financial statements, and year-end reports are worth keeping longer, since they tie years of activity together.
Property & investment records
Records that establish cost basis (purchase documents, capital improvements, reinvested dividends, and sale or disposal paperwork) should be kept for as long as you own the asset, plus at least three years after you sell or dispose of it. Basis records often outlive the standard retention window, because you need them to calculate gain or loss when the asset is finally sold.
Records to keep permanently
Some documents should never be discarded: copies of filed tax returns, audit reports and examination results, legal and entity-formation documents, retirement-plan records, real-property and deed records, and important corporate records such as bylaws, minutes, and stock registers.
Employment & payroll
Keep payroll tax records (wages paid, tax deposits, W-2s and W-4s, and the related returns) for at least four years after the tax becomes due or is paid, whichever is later. Where records overlap with benefits, retirement plans, or workers' compensation, hold them for the longer applicable period.
These are general guidelines, not a substitute for advice on your specific situation. Retention needs vary with state rules, and lenders, insurers, and other agencies may set their own requirements. Keep anything tied to an open item, audit, loan, or dispute longer than the periods above, and confirm with us before discarding anything. See the IRS guidance on how long to keep records, or contact the firm.
Not sure what you can discard?
Before you shred anything, let's confirm what still needs to be kept for your situation and what's safe to let go.