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RECORD
KEEPING REQUIREMENTS
Tax returns can generally be audited for up
to three years by IRS and four years by CA after
filing and up to six years if IRS suspects under
reported income. It is wise to keep tax records at
least five years after a return is filed.
Requirements for records kept electronically are the
same as for paper records. Generally,
follow these recommended periods for various
documents.
BUSINESS ACCOUNTING RECORDS
Tax Returns - Permanent
Audit Reports – Permanent
Expense Records – 5 years
AP/AR – 5 years
Loan Payment Schedules – 5 years
Sales Records – 5 years
REAL
PROPERTY RECORDS
Construction Records – Permanent
Leasehold Improvements – Permanent
Real Estate Purchases – Permanent
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INDIVIDUAL
RECORDS
Tax Returns – Permanent
W2s – 5 years
1099s – 5 years
Cancelled checks supporting tax deductions – 5 years
Bank deposit slips – 5 years
Bank Statements – 5 years
Donation documents – 5 years
Credit Card statements – 5 years
Investment purchase – Ownership period + 5 years
Year- end brokerage statements – Ownership Period +5
years
Mutual Fund annual statements – Ownership Period + 5
years
Investment Property purchase documents – Ownership
Period + 5 years
Home purchase documents – Ownership period + 5 years
Home improvement receipts & cancelled checks –
Ownership period + 5 years
IRA non- deductible contributions (Form 8608) –
Permanent
Divorce Documents – Permanent
Loans – Term of loan + 5 years
Estate Planning Documents - Permanent
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