How long should you keep documents?

Question

I work for a construction contractor. We have files pertaining to jobs we are doing and have done. Some of the jobs we have done were completed 4 years ago, and some 5 years ago. How long should we keep the documents from those jobs?

My boss is worried about possible audits, and likes to keep things for as long as possible.

Answer 1

How long should you keep financial records and other documents?

It's best to err on the side of keeping, since you never know when you'll want to refer to an old receipt or statement. A year's worth of records can fit into a file box or an accordion folder or two.

There are some crucial documents to keep for good. Make copies of birth certificates, Social Security cards, passports, immigration papers, marriage licenses and divorce certificates, stock and bond certificates, real-estate documents, current insurance policies and wills. Keep originals and copies separate from one another in places like a fireproof home safe, bank safe-deposit box, your lawyer's office, or a trusted neighbor's house.

Your tax returns -- and all supporting documentation -- must be kept for at least three years in case of an audit. It's better to keep them for at least seven years, and best to keep them permanently: There is no statute of limitations for IRS investigations that involve a false or fraudulent return. These documents, which include statements from financial institutions and annual credit-card statements, will also come in handy if you're applying for a mortgage or major loan.

Hold on to receipts or canceled checks for home-improvement projects and big-ticket items for as long as you own them. You don't need to keep bills for non-tax-deductible items and utilities for more than a year. Day-to-day receipts for credit-card purchases and ATM transactions can be discarded (shred or tear to be safe) when the monthly credit-card or bank statement arrives.

There are also reasons for keeping nonessentials. For example, referring back to your own medical documents might be easier than going through your insurer. To establish a budget, you'll need bills and receipts to track your expenditures. And on a more romantic note, receipts from hotels, restaurants, and shops offer information that might otherwise be lost. Years from now, an old receipt can help you find a restaurant you loved in Paris, or the number of the room you stayed in at your honeymoon hotel.

Answer 2

I am an accountant/office manager. My rule of thumb is to NEVER throw them away. Simply move them to storage after about 10 years.

I dont literally mean never, but at least 10 years for tax documents, receipts, and the like. I occasionally need to know something and I have to look back through things like that.

Answer 3

It is a good recomendation to keep documents forever. You may want to pack and put away documents older than 5 years, but always have them stored somewhere for backup.

Answer 4

For personal financial information the IRS requires 3 years unless there is a problem, then they can go back 7.

Answer 5

Canada used to be 7 yrs but is now 6 at least that's what my accountant says.

Answer 6

7-10 yrs..some people keep them longer because you never know when a problem will arise, and maybe you need to go back that far..but for the most part 7-10 should be fine..

Answer 7

10 years to play it safe. However, I believe that statute of limitations for taxes is either 7 or 8 years here in the USA

Answer 8

Canadian law only requires you keep documents for 7 years.

Answer 9

Last I heard, 7 years.

Answer 10

7 years ( that is pretty much the limit for your legal responsibility with the IRS but with basically unlimited storage these days scan and save )