How Long Should You Keep Tax Records?
Keep returns indefinitely and the supporting records usually for six years: In general, except in cases of fraud or substantial understatements of income, the IRS can only assess tax for a year within three years after the tax return for that year was filed (or, if later, three years after the return was due). For example, if you filed your 2021 individual income tax return by its original due date of April 15, 2022, IRS will have until April 15, 2025, to assess a tax deficiency against you. If you file your return late, IRS generally will have three years from the date you filed the return to assess a deficiency.
Period of Limitations that apply to income tax returns
Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.
If separation or divorce becomes a possibility, be sure you have access to any tax records affecting you that are kept by your spouse. Copies of all joint returns filed and supporting records are important. Your records should include a copy of the divorce decree or agreement of separate maintenance, which may be needed to substantiate alimony payments and distinguish them from child support or a property settlement. Your records should also include agreements or decrees over custody of children and any agreements about who is entitled to claim an exemption for them.
While it's impossible to be completely sure that the IRS won't at some point seek to assess tax, retaining tax returns indefinitely and important records for six years after the return is filed should, as a practical matter, be adequate.
Period of Limitations that apply to income tax returns
- Keep records for 3 years if situations (4), (5), and (6) below do not apply to you
- Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return
- Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction
- Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return
- Keep records indefinitely if you do not file a return
- Keep records indefinitely if you file a fraudulent return
- Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later
Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.
If separation or divorce becomes a possibility, be sure you have access to any tax records affecting you that are kept by your spouse. Copies of all joint returns filed and supporting records are important. Your records should include a copy of the divorce decree or agreement of separate maintenance, which may be needed to substantiate alimony payments and distinguish them from child support or a property settlement. Your records should also include agreements or decrees over custody of children and any agreements about who is entitled to claim an exemption for them.
While it's impossible to be completely sure that the IRS won't at some point seek to assess tax, retaining tax returns indefinitely and important records for six years after the return is filed should, as a practical matter, be adequate.