In general, the IRS recommends keeping tax records for at least 3 years from the date you filed the return or the due date of the return, whichever is later — this matches the standard statute of limitations the IRS has to audit a return or for you to file an amended return claiming a refund.
However, several situations call for longer retention:
- 6 years: If you underreported your income by more than 25% of the gross income shown on the return, the IRS has up to 6 years to assess additional tax.
- 7 years: If you claimed a deduction for worthless securities or a bad debt deduction, keep records for 7 years.
- Indefinitely: If you filed a fraudulent return or did not file a return at all, there is no statute of limitations — keep records indefinitely. Also keep records indefinitely if you're unsure whether you filed (to prove you did).
- Employment tax records: Keep for at least 4 years after the tax becomes due or is paid, whichever is later.
- Property-related records: Keep records tied to the purchase or improvement of real estate, investments, or other property for as long as you own the asset, plus the applicable statute of limitations (usually 3 years) after you sell it and report the sale, since you'll need them to calculate gain or loss and depreciation.
Practical tips:
- Keep copies of filed tax returns themselves permanently — they're small and useful for future reference (loan applications, Social Security calculations, amended returns).
- State tax agencies may have different statute-of-limitations periods than the IRS, so check your state's rules if applicable — some states allow longer audit windows.
- Digital copies (scanned PDFs) are generally acceptable, as long as they're legible and accessible.
When in doubt, err on the side of keeping records longer, especially for anything involving property, investments, or business deductions.