The IRS requires record retention as long as they are important for Federal Tax law. Generally this means:
- 3 years from the date the return is filed...or
- 2 years from the tax payment date...or
- 6 years, if income is under-reported by more than 25%
(whichever is later)
It is suggested that you keep all your tax returns (1040's), IRA/401k records, investment
purchases/sales indefinately. Investment purchases include the purchase and sale of your home or any property and any major improvements made to that property.
Keep ALL--bank statements, checks, receipts and other financial records for at least three years, especially those documents that will support your tax return figures. Many people have been under the assumption that the check they wrote is their receipt and they throw away receipts. This is not true. You MUST keep all receipts as proof to support your tax return.
Please note that all information provided in this forum is not to be considered as tax advice. Always check with a Tax Professional. The information provided is researched and quoted per the IRS website.
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