Storing Tax Records:
How Long is Long Enough?
Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the "three-year law" and leads many people to believe they're safe provided they retain their documents for this period of time.
However, if the IRS believes you have significantly underreported your income (by 25 percent or more), it may go back six years in an audit. If there is any indication of fraud, or you do not file a return, no period of limitation exists.To be safe, use the following guidelines.
1 Year
Business Records to Keep for One Year
3 Years
Business Records to Keep for Three Years
6 Years
Business Records to Keep for Six Years
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Forever
Business Records to Keep Forever
While federal guidelines do not require you to keep tax records "forever," in many cases there will be other reasons you'll want to retain these documents indefinitely.
Business Records to Keep
1 Year
Personal Records to Keep for One Year
3 Years
Personal Records to Keep for Three Years
6 Years
Personal Records to Keep for Six Years
Forever
Personal Records to Keep Forever
Personal Records to Keep
1 Year
Personal Records to Keep for One Year
3 Years
Personal Records to Keep for Three Years
6 Years
Personal Records to Keep for Six Years
Forever
Personal Records to Keep Forever