How far back can I go to safely destroy my income tax return records?

Question

I've heard it was seven years but want to make sure.

Answer 1

i don't know the precise answer, but a word of caution. you should never throw away any records that may be needed to establish the cost basis for any investments you currently hold. for example, let's say you still have a bond that was purchased 28 years ago or you own shares of a company that you bought 15 years ago. when the bond is sold or matures or when you sell the stock you will have to report a gain or loss which will be the difference between the ORIGINAL cost and the selling price. sorry for the lecture, but i do returns professionally and this is the number one missing piece of information from my clients.

Answer 2

4 years

Answer 3

Here is the right answer. Keep tax return copies forever to prove that you filed - there is no statute of limitations if you failed to file so you have to prove it. Keep backup records for at least 3 years. Keep cost basis records for investments until 3 years after you sell them.

Answer 4

You can safely destroy your income tax records any time you wish. You can shred them, you can even burn them - hopefully without any "incendiary" devices that might burn your hand or explode in your face.

Picture in your head the method of destroying your records.

Stay safe.

7 years, or months or days are irrelevant. I guess if your records accumulate too much dust, you might have to get a allergenic.

Best Wishes.

Answer 5

Listen to Jack... It's 7 years. Once it turns eight, introduce it to the shredder!

Answer 6

7 years for induviduals

Answer 7

seven years for individuals.
ten years for businesses.

Answer 8

above is good advice; however, no statute of limitations on tax fraud.