HOW LONG SHOULD I KEEP THIS STUFF? RECORD RETENTION REQUIREMENTS
The length of time you should keep a document depends on the action, expense or event that the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the statute of limitations for that tax return runs out.
The statute of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax.
Keep purchase records for inventory and property and equipment that are still in use or available for sale. Generally, keep records relating to property until the statute of limitations expires for the year in which you dispose of the property. For example, three years after disposal.
A general rule is to keep financial records for three to six years, including canceled checks, bank statements and reconciliations, and employment tax records
The following document outlines recommended retention periods for various document types. This is a good source to consult for questions about a particular type of document and the length of time it should be maintained.
This information is provided as a general guideline only. If you have questions about destroying tax or accounting records, contact your Marvin and Company, P.C. representative.