How Long to Keep Tax Records
How long should you keep tax records?
This page is an informational summary based on IRS guidance. It does not constitute professional advice of any kind. Confirm specifics at irs.gov or with a qualified tax professional before making recordkeeping decisions.
For most people, the general rule is to keep tax records for three years from the date you filed the original return, or the due date of the return — whichever is later. Certain situations require six years, seven years, or indefinite retention. Copies of filed returns are worth keeping permanently. The right retention period depends on your specific situation.
What is the general rule for keeping tax records?
The IRS can generally assess additional tax — or you can file a claim for a refund or credit — within three years of the date you filed your return (or the due date, if later). This three-year window is called the period of limitations. It is the benchmark used for most individual and business tax records.
The period of limitations defines your window of exposure: how long the IRS can audit your return, and how long you have to go back and amend it. Once the period expires for a given return, the supporting documents for that year generally no longer need to be kept solely for federal tax purposes.
Common documents covered by the three-year rule include W-2s, 1099s, receipts for deductible expenses, canceled checks supporting reported deductions, and bank statements that match income reported on your return.
If you are unsure when your three-year clock starts, the IRS counts from the later of: the date you filed, or the due date of the return (including extensions). For example, if you filed a 2022 return on April 18, 2023, the three-year period runs to April 18, 2026.
For additional context on filing deadlines and due dates, see Tax Filing Deadlines 2026.
When do you need to keep records longer?
Several specific situations extend the standard three-year period significantly.
Six-year retention: unreported income
If you did not report income that you were required to report, and the omitted amount is more than 25 percent of the gross income shown on your return, the IRS has six years — not three — to assess additional tax. In that situation, keep all records for that return for at least six years from the filing date.
Seven-year retention: worthless securities and bad debts
If you file a claim for a loss from worthless securities (such as stock in a company that has become completely valueless) or a bad-debt deduction (an amount you were owed that became uncollectible), the period of limitations is seven years. Keep the supporting documentation for at least seven years from the date you filed the return on which the deduction or loss was claimed.
Indefinite retention: no return filed, or fraudulent return
If you did not file a return for a given year, or if you filed a return that was fraudulent, there is no period of limitations — the IRS can assess tax at any time. In those circumstances, records for that period should be retained indefinitely.
If you have questions about whether a past return was filed or whether any prior period remains open, a qualified tax professional can review the situation and advise accordingly. To locate one, you can find a tax professional in the TaxProsRated directory.
How long to keep employment and property records?
Employment tax records
If you are an employer, or were self-employed with workers, a separate retention rule applies to employment tax records. The IRS guidance is to keep employment tax records for at least four years after the date the tax became due or was paid, whichever is later.
Employment tax records typically include records of wages paid, amounts withheld for income tax and FICA, tips reported by employees, fringe benefits provided, copies of Forms W-2 issued, and records of any employment tax deposits made. Because employment tax matters can involve state agencies as well as the IRS, some employers choose to retain these records longer than the federal minimum.
Property records
Records related to property — real estate, vehicles, equipment, or other capital assets — follow a different timeline altogether. You generally need to keep property records until the period of limitations expires for the year in which you dispose of the property.
The reason is that property records are needed to calculate depreciation, adjusted basis, gain, or loss at the time of sale or disposal. Without them, you would be unable to accurately document the cost basis you report on your return. Because the relevant tax return is the one filed in the year of disposal — not the year of purchase — property records can span many years or even decades.
Examples of property records to keep include the original purchase contract, settlement statements, records of capital improvements, records of depreciation claimed in prior years, and records of any casualty losses or insurance reimbursements affecting basis.
For guidance on what to do if a tax bill arises after a property sale, see Can't Pay Your Tax Bill? IRS Payment Plans Explained.
Should I keep copies of my tax returns?
Yes. The IRS recommends keeping copies of filed returns indefinitely. This recommendation is separate from the period-of-limitations rules that govern supporting documents.
There are several practical reasons to retain copies of returns permanently:
- They provide a baseline for preparing future returns, particularly when carryforward items (such as capital loss carryovers or net operating losses) are involved.
- They are necessary for preparing amended returns if an error is discovered after filing.
- The IRS may not retain copies of older returns in a form that is readily accessible. If a dispute or question arises about a return from many years ago, your copy may be the only available reference.
- Lenders, courts, government agencies, and other parties may request prior-year returns for purposes unrelated to the IRS — and have their own timelines that may exceed the federal period of limitations.
If you are unsure whether you have filed returns for all required years, see Do I Need to File Taxes? for a summary of filing requirements.
How should I store and dispose of tax records?
Storage formats
The IRS accepts records kept in either paper or electronic format. If you maintain electronic records, they should be readable and accessible — meaning you should be able to reproduce legible copies if requested. Scanned images of paper documents are generally acceptable provided they accurately reproduce the original.
Electronic storage has practical advantages: documents cannot be lost in a flood or fire, and they can be organized and retrieved more efficiently than paper files. If you use electronic storage, maintaining backups in a separate location is a sensible precaution.
Paper storage remains equally valid. If you retain paper records, store them in a secure, dry location. Organized filing by tax year makes retrieval straightforward if questions arise later.
Disposing of records securely
When the applicable retention period ends, sensitive tax documents should be shredded rather than discarded in ordinary recycling or trash. Tax records frequently contain Social Security numbers, financial account information, and other details that are valuable to identity thieves. Cross-cut or micro-cut shredders provide a greater level of security than strip-cut models.
Before disposing of any records, confirm that the federal retention period has passed, and also check whether your lender, insurer, or state tax authority has a longer requirement for the same records. Some states have their own periods of limitations that extend beyond the federal three-year rule.
Record retention at a glance
| Situation | How long to keep records |
|---|---|
| General rule — tax owed and reported correctly | 3 years from filing date (or due date, whichever is later) |
| Unreported income exceeding 25% of gross income shown on return | 6 years |
| Claim for loss from worthless securities or bad-debt deduction | 7 years |
| No return filed | Indefinitely |
| Fraudulent return filed | Indefinitely |
| Employment tax records | At least 4 years after tax due or paid (whichever is later) |
| Property records (real estate, capital assets) | Until the period of limitations expires for the year of disposal |
| Copies of filed returns | Indefinitely (recommended) |
Frequently asked questions
Can I shred tax documents after three years?
You can generally shred most supporting documents — receipts, W-2s, 1099s, bank statements tied to a specific return — once the three-year period of limitations has passed for that year, assuming the general rule applies. However, copies of the return itself are worth keeping permanently, as are property records, employment tax records, and documents for any year involving unreported income or a bad-debt or worthless-securities claim.
Is it acceptable to keep records in digital format instead of paper?
Yes. The IRS accepts records maintained electronically, provided they are accurate, complete, and capable of being reproduced in a legible format if requested. Scanned copies of original paper documents generally satisfy this standard. Maintaining a secure backup of digital records — on a separate drive or cloud storage — is a practical precaution against data loss.
What about state tax records?
Federal IRS rules govern federal returns only. Most states have their own periods of limitations, which may differ from the federal three-year standard. Some states allow up to six years to audit a return. If you file state returns, check the rules for each state where you file, or consult a qualified tax professional familiar with those jurisdictions. The IRS guidance does not cover state-specific requirements.
How long should a business keep its tax records?
The same period-of-limitations rules apply to business returns as to individual returns. The general three-year rule governs most business records; the six-year rule applies when gross income is substantially understated; and the indefinite rule applies when no return is filed. Employment tax records require at least four years. Property and asset records should be kept until the period of limitations expires for the year of disposal. Businesses with complex structures may benefit from a formal document-retention policy reviewed by a qualified tax professional.
Does the retention period start from when I filed or when the tax year ended?
The period of limitations for assessment generally starts from the date you filed your return, or the due date of the return — whichever is later. It does not start from the end of the tax year itself. If you filed your 2022 federal return on April 18, 2023, the three-year period runs to April 18, 2026, not to December 31, 2025. Filing late (after the due date) also delays the start of the clock — it begins on the actual filing date in that case.