Storing Tax Records

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. However, to be safe from audits involving potential fraud or significant underreporting, experts recommend following these detailed guidelines. Federal law generally requires taxpayers to keep tax returns and supporting documents for three years, although the IRS may audit records up to six years back in cases of significant underreported income or suspected fraud. Creating electronic backups, including scanning paper documents, is recommended, potentially utilizing external drives, CDs/DVDs, or online backup services for disaster protection. Disposal of sensitive documents, once no longer needed, should be done by shredding to prevent identity theft. Guidelines for retaining business and personal documents vary, with some requiring retention for one, three, or six years, while others, such as year-end financial statements and tax returns, should generally be kept indefinitely. Specific items like car records, warranties, and mortgages have their own distinct retention periods. However, to be safe from audits involving potential fraud or significant underreporting, experts recommend following these detailed guidelines.

Business Documents

Personal Documents