Record Retention Guide

Storing tax records

How long is long enough?

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the "three-year law" and leads many people to believe they're safe provided they retain their documents for this period of time.However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit. To be safe, use the following guidelines.

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.

For more detailed information on records retention please click on the link below which will take you to the IRS website which provides all the details.