Federal law requires you to maintain copies of your tax returns and supporting documents for three years. The three years begin at the date your tax return is filed, or the due date, whichever is later. In other words, you are required to retain documentation for a tax return filed on April 15, 2010 until April 15, 2013. This can be very confusing, especially because many people file extensions, and actually file their return later in the year, extending the time. To make it easier, we just simply recommend that you should have all documentation for at least the past four years in your file.
Personal Documents To Keep For Four Years:
Credit Card Statements
Bank Statements
Receipts for Charity, Medical, Mortgage Interest and Tax and any other documents used in the preparation of your tax return, including income documents such as W2 & 1099 forms, & Utility Records (for proof of residency)
School Enrollment Records for Children
Personal Records To Keep Forever:
Income Tax Returns
Income Tax Payment Checks
Real Estate Property Records / Improvement Receipts (or keep four years after property is sold)
Investment Trade Confirmations
Business Documents To Keep For Four Years
All Documents Used in the Preparation of Income, Sales, Excise, Franchise, and Payroll Tax Returns such as:
Bank Statements
Credit Card Statements
Petty Cash Vouchers
Sales Records
Payroll Time and Pay Slip Records
Personnel Records with Employees’ Data
Records of Physical Inventory
Any 1099 forms received for income earned or interest paid
Proof of Loan Interest Paid to Financial Institutions
Travel and Expense Logs
Mileage Logs for Vehicles Records
Copies of All IRS/State Revenue Department Correspondence
Business Records To Keep Forever
(While federal guidelines do not require you to keep tax records "forever," in many cases there will be other reasons you'll want to retain these documents indefinitely.)
Corporate Documents (incorporation, charter, by-laws, etc.)
Real Estate Purchases/Deeds Legal Records,
Correspondence and Other Important Matters
Minutes
Books of Directors and Stockholders Property Appraisals by Outside Appraisers
Retirement and Pension Records
Tax Returns and Worksheets
Trademark and Patent Registrations
Special Circumstances
Asset Purchase Contracts/Bills of Sale (keep until 4 years after the asset is sold)
Credit Card Receipts (keep until verified on your statement)
Insurance Policies (keep for the life of the policy)
Mortgages / Deeds / Leases (keep 6 years beyond the agreement)
Pay Stubs (keep until reconciled with your W-2)
Sales Receipts (keep for life of the warranty)
Stock and Bond Records (keep for 4 years beyond selling)
Other Bills (keep until payment is verified on the next bill)
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