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Storing Tax Records: How Long is Long Enough?

Business Records To Keep:

Retention PeriodDocuments
1 YearCorrespondence with Customers and Vendors, Duplicate Deposit Slips, Purchase Orders (other than Purchasing Department copy), Receiving Sheets, Requisitions, Stenographer’s Notebooks, Stockroom Withdrawal Forms
3 YearsEmployee Personnel Records (after termination), Employment Applications, Expired Insurance Policies, General Correspondence, Internal Audit Reports, Internal Reports, Petty Cash Vouchers, Physical Inventory Tags, Savings Bond Registration Records of Employees, Time Cards For Hourly Employees
6 YearsAccident Reports, Claims, Accounts Payable Ledgers and Schedules, Accounts Receivable Ledgers and Schedules, Bank Statements and Reconciliations, Cancelled Checks, Cancelled Stock and Bond Certificates, Employment Tax Records, Expense Analysis and Expense Distribution Schedules, Expired Contracts, Leases, Expired Option Records, Inventories of Products, Materials, Supplies, Invoices to Customers, Notes Receivable Ledgers, Schedules, Payroll Records and Summaries, including payment to pensioners, Plant Cost Ledgers, Purchasing Department Copies of Purchase Orders, Sales Records, Subsidiary Ledgers, Time Books, Travel and Entertainment Records, Vouchers for Payments to Vendors, Employees, etc., Voucher Register, Schedules
ForeverAudit Reports from CPAs/Accountants, Cancelled Checks for Important Payments (especially tax payments), Cash Books, Charts of Accounts, Contracts, Leases Currently in Effect, Corporate Documents (incorporation, charter, by-laws, etc.), Documents substantiating fixed asset additions, Deeds, Depreciation Schedules, Financial Statements (Year End), General and Private Ledgers, Year End Trial Balances, Insurance Records, Current Accident Reports, Claims, Policies, Investment Trade Confirmations, IRS Revenue Agents’ Reports, Journals, Legal Records, Correspondence, and Other Important Matters, Minutes Books of Directors and Stockholders, Mortgages, Bills of Sale, Property Appraisals by Outside Appraisers, Property Records, Retirement and Pension Records, Tax Returns and Worksheets, Trademark and Patent Registrations

Personal Records To Keep:

Retention PeriodDocuments
1 YearMonthly and quarterly statements after the year-end statement has arrived
3 YearsCredit Card Statements, Medical Bills (in case of insurance disputes), Utility Records, Expired Insurance Policies
6 YearsSupporting Documents For Tax Returns, Accident Reports and Claims, Medical Bills (if tax-related), Sales Receipts, Wage Garnishments, Other Tax-Related Bills
ForeverCPA Audit Reports, Legal Records, Important Correspondence, Income Tax Returns, Income Tax Payment Checks, Property Records / Improvement Receipts (or six years after the property is sold), Investment Trade Confirmations, Retirement and Pension Records (Forms 5448, 1099-R, and 8606 until all distributions are made from your IRA or other qualified plan)

Special Circumstances:

DocumentRetention Period
Car RecordsKeep until the car is sold
Credit Card ReceiptsKeep until verified on your statement
Insurance PoliciesKeep for the life of the policy
Mortgages / Deeds / LeasesKeep 6 years beyond the agreement
Pay StubsKeep until reconciled with your W-2
Sales ReceiptsKeep for the life of the warranty
Stock and Bond RecordsKeep for 6 years beyond selling
Warranties and InstructionsKeep for the life of the product
Other BillsKeep until payment is verified on the next bill
Depreciation Schedules and Other Capital Asset RecordsKeep for 3 years after the tax life of the asset