How long do I keep records?
Remember…Federal returns can be audited for up to six years; therefore all records supporting tax deductions should be kept that long.
Keep this list on hand and use it with a written schedule for disposal of documents you need not keep.
Records Retention Schedule
|
Records
|
Retention Period
|
|---|---|
|
Cancelled Checks
|
7 years |
|
Bills Paid
|
1 year |
|
Bank Deposit Slips
|
7 years |
|
Bank Statements
|
7 years |
|
Credit Card Statements
|
7 years |
|
Income Tax Returns
|
7 years |
|
Employment Tax Returns
|
7 years |
|
Tax Deduction Records
|
7 years |
|
Expense Reports
|
7 years |
|
IRA Contributions
|
Permanent |
|
Entertainment Records
|
7 years |
|
Bills for Large Purchases
|
Life of purchase for insurance purposes |
|
Financial Statements
|
Permanent |
|
Contracts
|
Permanent |
|
Minutes of Meetings
|
Life of company plus 7 years |
|
Corporation Stock Records
|
Permanent |
|
Employee Records
|
Period of Employment |
|
Paycheck Stubs
|
1 year |
|
Depreciation Schedules
|
Life of business plus 7 years |
|
Real Estate Records
|
Permanent |
|
Journal and General Ledger
|
Life of business plus 7 years |
|
Inventory Records
|
7 years |
|
Home Improvement Records
|
Ownership period plus 7 years |
|
Investment Records
|
Ownership period plus 7 years |