What to keep and what to toss.
How long should you keep your documents for?
A question we are commonly asked is “How long should I keep my documents for?” Well, the answer may vary depending on what type of document you are referring to and for what type of entity (business or personal). While we welcome and encourage all of our clients to reach out to us whenever they need to, we have a quick reference guide below in case you want to reference it yourself.
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 under reported your income , it may go back six years in an audit. If there is any indication of fraud, or you do not file a return, no period of limitation exists.To be safe, use the following guidelines: