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NTA Blog: The NTA Reimagines the IRS with a Dramatically Improved Taxpayer Experience: Part Two

September 15, 2022 – Last month, Congress passed the Inflation Reduction Act (IRA22), which provides the IRS with supplemental funding […] The post NTA Blog: The NTA Reimagines the IRS with a Drama...

TAS Tax Tip: Get Current on Your Federal Taxes

September 14, 2022 – Part of your Mid-Year Tax Checkup should include seeing whether you have any overdue tax returns […] The post TAS Tax Tip: Get Current on Your Federal Taxes appeared first on T...

NTA Blog: The NTA Reimagines the IRS with a Dramatically Improved Taxpayer Experience: Part One

September 14, 2022 – Last month, Congress passed the Inflation Reduction Act (IRA22), which provides the IRS with supplemental funding […] The post NTA Blog: The NTA Reimagines the IRS with a Drama...

TAS Tax Tip: What the Inflation Reduction Act Means for You

September 12, 2022 – The Inflation Reduction Act, which includes expanded or extended tax credits and additional funding for the […] The post TAS Tax Tip: What the Inflation Reduction Act Means for...

NTA Blog: Improving Services to Taxpayers With Visual Disabilities

September 08, 2022 -Millions of U.S. taxpayers are visually impaired and unable to read print material in a standard font […] The post NTA Blog: Improving Services to Taxpayers With Visual Disabili...

TAS Tax Tip: Valuable information about child and dependent-related tax benefits

If you have children or other dependents, and qualify to claim them on your tax return, there are a few […] The post TAS Tax Tip: Valuable information about child and dependent-related tax benefits...

Systemic penalty relief is now available for certain tax year 2019 and 2020 returns

On August 24, 2022, the IRS announced that it will grant relief for failure-to-file (FTF) penalties on the following 2019 […] The post Systemic penalty relief is now available for certain tax year ...

NTA Blog: Good News: The IRS Is Automatically Providing Late Filing Penalty Relief for Both 2019 and 2020 Tax Returns. Taxpayers Do Not Need to Do Anything to Receive this Administrative Relief.

August 24, 2022 -Taxpayers need not do anything to receive this administrative relief. The IRS is automatically removing (abating) failure-to-file […] The post NTA Blog: Good News: The IRS Is Autom...

TAS Tax Tip: Paying the IRS

August 17, 2022 – Learn more about the different options available to pay your federal taxes. TAS Tax Tip: Paying […] The post TAS Tax Tip: Paying the IRS appeared first on Taxpayer Advocate Servic...

TAS Tax Tip: Mid-Year Tax Checkup

August 15, 2022 – It’s time for a mid-year tax checkup. This quick checkup will help you avoid being surprised […] The post TAS Tax Tip: Mid-Year Tax Checkup appeared first on Taxpayer Advocate Ser...

Retention Guide

Storing tax records: How long is long enough?

April 15 has come and gone and another year of tax forms and shoeboxes full of receipts is behind us. But what should be done with those documents after your check or refund request is in the mail?

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.

Business Records To Keep... Personal Records To Keep...
1 Year 1 Year
3 Years 3 Years
6 Years 6 Years
Forever Forever
Special Circumstances

Business Documents To Keep For One Year

  • Correspondence with Customers and Vendors
  • Duplicate Deposit Slips
  • Purchase Orders (other than Purchasing Department copy)
  • Receiving Sheets
  • Requisitions
  • Stenographer's Notebooks
  • Stockroom Withdrawal Forms

Business Documents To Keep For Three Years

  • Employee 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

Business Documents To Keep For Six Years

  • Accident 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
  • Records related to net operating losses (NOL's)
  • Sales Records
  • Subsidiary Ledgers
  • Time Books
  • Travel and Entertainment Records
  • Vouchers for Payments to Vendors, Employees, etc.
  • Voucher Register, Schedules

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.

  • Audit 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 Agent 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 Documents To Keep For One Year

While it's important to keep year-end mutual fund and IRA contribution statements forever, you don't have to save monthly and quarterly statements once the year-end statement has arrived.

Personal Documents To Keep For Three Years

  • Credit Card Statements
  • Medical Bills (in case of insurance disputes)
  • Utility Records
  • Expired Insurance Policies

Personal Documents To Keep For Six Years

  • Supporting Documents For Tax Returns
  • Accident Reports and Claims
  • Medical Bills (if tax-related)
  • Sales Receipts
  • Wage Garnishments
  • Other Tax-Related Bills

Personal Records To Keep Forever

  • CPA Audit Reports
  • Legal Records
  • Important Correspondence
  • Income Tax Returns
  • Income Tax Payment Checks
  • Property Records / Improvement Receipts (or six years after property 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

  • Car Records (keep until the car is sold)
  • Credit Card Receipts (keep until verified on your statement)
  • Insurance Policies (keep for the life of the policy)
  • Mortgages / Deeds / Leases (keep 6 years beyond the agreement)
  • Pay Stubs (keep until reconciled with your W-2)
  • Sales Receipts (keep for life of the warranty)
  • Stock and Bond Records (keep for 6 years beyond selling)
  • Warranties and Instructions (keep for the life of the product)
  • Other Bills (keep until payment is verified on the next bill)
  • Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset)