What is the statute of limitations on keeping old income tax returns?

Question

I have about 10 years of returns, and as we are moving, I would like to get rid of some of them.

Answer 1

Depending on your situation, it varies from 3 years to no limit.

The answer is found in IRS Publication 552: Recordkeeping for Individuals, in Table 3: Period of Limitations.

Answer 2

As stated by others, the statute of limitations is three years from the date the tax return is due or filed, whichever is later. For most people, it is sufficient to keep three years' worth of tax returns. HOWEVER, if there is anything on an older return which affects an item being shown on one of the returns on which the statute is open, you would need to keep those older returns as well.

For example, say you own rental property which you purchased in 1990 and have been depreciating every year. You will need to keep the returns from 1990 until until the year the property is disposed of so that the depreciaton can be tracked. Other common issues which may force you to keep older returns include capital loss carryovers, net operating loss carryovers, home office deduction carryovers, etc.

Answer 3

There is no statutory requirement that individual taxpayers maintain a minimum number of years' tax records. (Businesses have some different rules.) If your taxes have all been paid and your returns have all been filed, then you probably do not need more than three years' worth of records, because that is basically the length of time that you and the IRS have to go back and change a return or part of one. You could keep five years' worth to be safe and still ditch about half of them. (But why not scan them all and keep the digital files on your computer, just in case?)

Answer 4

Here's the law:
The general requirement as stated in CFR 1.6001-1 is that records must be kept "so long as the contents thereof may become material in the administration of ANY internal revenue law."
That means that depending on what you claimed on your tax return, the retention requirement can be anywhere from a few years to a lifetime. There's a different time requirement if you've claimed gains and losses, if you have or had a business, if you have or had property, etc.

Answer 5

7 years

Answer 6

under its laws, its usually three years, but i would keep your records. if ever audited, they can go back that far or further if there is a question that comes up. some will say to dump the records after five or ten years. i have known people to get audited back further if they think something is amiss. i have kept all of mine for over twenty years. i scanned everything into my computer. the irs thinks it can do anything it wants to. tax attorneys are expensive. i would recommend scanning the everything into your computer and still hold on to the last three years each year. if there is ever a audit. you can go right to your computer and fax a copy or print one. the irs is the only goverment agency that never has been audited. its better to side with caution. i have had friends who had to come up with records going back several years and couldn't find it.

Answer 7

The IRS can go back 7 years to do an audit so you definitely must keep those. And if you filed any amendments to a return, it is 7 years from the amendment.

Answer 8

If you get audited, they can go back 7 years. My accountant recommended that I keep 10 years just for safe keeping. You do not have to keep the original documents with the exception of the tax form itself. If you have the time, you can scan into your computer receipts and other pieces of paper you used to come up with your figures.

Answer 9

if its more than 3 years, chances are you will be penalized. contact a taxes attorney for detailed info regarding your situation.

Answer 10

All I know is that I keep all of mine because the damn IRS just loves to audit me. Thanks to my husband wanting to be self employed...dumbass. If Creditors can come to you after 17 years....I wouldnt put it past the IRS.