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Last Updated: December 9, 2025

The length of time required to keep your records related to the preparation and filing of your tax returns is dependent on the statute of limitations for the returns. The statute of limitations is the length of time the IRS can audit a return and assess additional tax. This is also the time allowed for taxpayers to file amended returns. Generally, the IRS has three years to assess tax from the filing date of tax returns. However, in cases of fraud or substantial understatements of income, the time period is extended to six years. We generally recommend adding one year to the statute period.

Records to Keep Indefinitely

• Tax returns
• Cancelled checks for tax payments
• Compiled, reviewed, or audited year-end financial statements
• Company minutes and stock records
• IRS audit reports
• Property appraisals
• Trademark and patent registrations

Real Estate and Business Property Records

Information related to real estate and business property, including purchase and lease information, need to be kept as long as the property is owned, and for a period of seven years after the property is sold or no longer leased. For property acquired in a like-kind exchange, records related to the acquisition of the old property should be retained until the new property is sold. For inherited property, copies of the Estate Inventory reporting the property value should be kept for seven years after the property has been sold. These records include:

• Purchase documents, including purchase of your primary residence
• Lease agreements

Tax Return Supporting Documents

By keeping your supporting documents for seven years, you are allowing yourself one extra year cushion beyond the statute of limitations. Of course, if you have not filed a return, the three or six-year period has not started. Records to keep for seven years include:

• Bank statements and reconciliations
• Insurance records,
• Mortgage statements
• Invoices for goods and services paid
• Customer invoices and deposit record
• Employee time records
• Inventory records
• Payroll tax returns

Underlying records such as bank deposit slips and cancelled checks can be kept for four years.

Employee Personal Records

Keep employee personal records for three year. These records include:

• W-4, NC-4, and I-9
• Retirement elections
• Performance reviews
• Salary and wage history

Records from Separation or Divorce

Both spouses will need copies of tax records, especially jointly filed returns. One or both spouses can be liable for tax on a jointly filed return, and the IRS can assess a deficiency against either. Be sure that both spouses also have copies of the records of all jointly-owned property.

Loss or Destruction of Records

To protect against loss or destruction of records, you should consider keeping your most important documents in a safe deposit box or other safe location. Having electronic copies of your most important documents will help ensure that you do not suffer a catastrophic loss of records. If you do suffer from a loss or destruction of records, many of the records can be reconstructed, but many more cannot.