Record Retention Guide

Tax Center

Storing Tax Records: How Long Is Long Enough?

Federal law requires you to maintain tax returns and supporting documentation. The IRS generally has three years to audit a return, but may examine up to six years if it suspects significant income underreporting, and has no time limit in cases of fraud. We recommend maintaining electronic backups stored securely off-site.

Keep for 1 Year
  • Monthly bank reconciliations
  • Monthly financial statements
  • Correspondence with customers and vendors
  • Duplicate deposit slips
Keep for 3 Years
  • Employee and payroll records
  • Expired insurance policies
  • General correspondence
  • Petty cash receipts and schedules
  • Bank statements
  • Accounts receivable and payable records
Keep for 6 Years
  • Sales records and invoices
  • Purchase records and vendor invoices
  • Subsidiary ledgers (accounts receivable, accounts payable, fixed assets)
  • Time sheets and payroll records
  • Expense reports and vouchers
  • Cancelled checks and tax payments
Keep Permanently
  • Corporate formation documents and bylaws
  • Annual financial statements (audited)
  • Annual tax returns
  • Real estate records
  • Patents, trademarks, and copyrights
  • Capital stock and bond records
  • Legal correspondence and agreements
  • IRS audit results and correspondence

Ready to Get Started?

Schedule a consultation today and let our experts build a strategy tailored to your goals.

Schedule a Consultation Call MD: 443-632-5992