Taxwise, as of 2007, what year back can I throw away files? 1999?

Answer 1

You should always have 3 years back on file in case you are audited, and if you are audited and they find something wrong, they can request files back an additional 4 years, so it is safe to keep files up to 7 years back.

Answer 2

That depends upon the records and your particular tax situation. If you have a large capital loss carryover from decades ago that is still not used up, you'll need to keep all of those records until it is plus at least 3 years. Gift Tax returns (Form 709) are permanent records and must be kept forever. Other tax items must be retained as long as the tax treatment issues exist. Home ownership and improvement costs would be a good example of that.

Answer 3

There are 3 holding periods. 3 years which covers most items. 5 years which covers a few items. And, indefinitely. If the IRS suspects fraud or if you have under-reported your income by 25%, they can go back forever. Also, as someone else mentioned, some things pertaining to your home, business, etc. should be held on to until they become irrelevant (plus three years.)