How long to keep what
The IRS generally has three years from the date you filed to audit a return, but that window extends to six years if income was substantially underreported, and there's no limit at all in cases of fraud or an unfiled return. Because of that, most CPAs recommend keeping core tax records well beyond the minimum audit window.
| Document Type | Retention Period |
|---|---|
| Filed tax returns | 7 years |
| Supporting documents (receipts, mileage logs, invoices) | 7 years |
| W-2s and 1099s | Permanently (for Social Security record purposes) |
| Bank and credit card statements | 7 years |
| Business tax and payroll records | 7 years |
| Real estate and home improvement records | As long as you own the property, plus 3 years after sale |
| Retirement and investment account records | As long as the account is open, plus 7 years after closing |
| Legal documents (wills, trusts, contracts) | Permanently |
When in doubt, keep it a little longer
Digital storage is cheap; an unanswerable question from the IRS is not. If you're ever unsure whether something can be discarded, it costs you almost nothing to scan it and hold onto a copy a bit longer.