How long must I have my tax records?

Answer 1

Answered DIRECTLY from the IRS website:

You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.

You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.

You file a fraudulent income tax return; keep records indefinitely.

You do not file a return; keep records indefinitely.

You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.

Your claim is due to a bad debt deduction; keep records for 7 years.

Your claim is due to a loss from worthless securities; keep records for 7 years.

Keep information on an asset for the life of the asset, even when you dispose of the asset; keep records indefinitely.

Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

Answer 2

You are subject to a general IRS audit for three years back from the current tax year. In 2006 you will need all your 2005,2004,2003 records if audited. If you are “suspected” of tax fraud you are subject to audit forever. You are required by most states to keep "business records” for 7 years. If you had any Schedule C activity your tax returns are for sure a business record. There are other legal matters that can arise that it would be to your advantage to produce your tax records. I currently have a situation involving thousands of dollars, which will require 15-year-old tax records, be produced to make a legal point. That case has nothing to do with the IRS but those records are the best evidence available (who would ever lie to the IRS) to prove a given issue. The best answer is to keep income tax records until three years after you are dead because of estate taxes and all of the other legal matters in which they can be helpful. I would take a deduction for the cost of the file cabinet necessary to do so if you only use it for tax records.

Answer 3

From the IRS website:
How Long To Keep Records
You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support items shown on your return until the period of limitations for that return runs out.

The period of limitations is the period of time in which you can amend your return to claim a credit or refund or the IRS can assess additional tax. Table 3 contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period beginning after the return was filed. Returns filed before the due date are treated as being filed on the due date.


Table 3. Period of Limitations

IF you... - THEN the period is...
1 Owe additional tax and (2), (3), and (4) do not apply to you - 3 years
2 Do not report income that you should and it is more than 25% of the gross income shown on your return - 6 years
3 File a fraudulent return - No limit
4 Do not file a return - No limit
5 File a claim for credit or refund after you filed your return - Later of 3 years or 2 years after tax was paid.
6 File a claim for a loss from worthless securities - 7 years

Answer 4

3 years.

Answer 5

The correct answer is seven years in the event of an audit. Make sure to shred and not toss out anything older than that.

Answer 6

Some lawyers and accountants suggest today, between 6 and 10 years.

Answer 7

Im not sure 100% about USA - but in Australia its generally 5 years.

Answer 8

Most people on average say 3 years. That's true if you have one job. If have two jobs or have your own business, keep them as long as you can.

Answer 9

always keep any inportant records like taxes for at least a year.

Answer 10

7 years minimum