--- title: "How Long to Keep Tax Records, and Which Ones | Wallace CPA" description: "How long to keep tax records: the IRS periods of 3, 6 and 7 years, 4 years for employment tax, property records, and how to store or shred documents." url: https://wallacecpa.multisites.ai/guides/how-long-to-keep-tax-records publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- # How long to keep tax records, and which ones The IRS says to keep records that support your tax return until the period of limitations runs out. For most returns that is 3 years. It is 6 years if you left out more than 25% of your gross income, and 7 years for a worthless securities or bad debt claim. Keep employment tax records at least 4 years. GuideUpdated October 21, 20266 min read ## Three years is the usual rule The IRS applies 3 years from filing when none of the longer situations apply. ## Some records last longer Property records stay until the limit runs out for the year you dispose of the property. Employment tax records stay at least 4 years. ## Check other needs before you shred Insurers, lenders and other agencies may ask for records longer than the IRS does. This guide explains how long to keep tax records and which ones matter most. It follows the IRS page on record retention, last reviewed by the IRS in June 2026. IRS rules can change, so check the page before you shred anything. This is general information, not advice for your situation. ## How long should I keep tax records? Keep records that support an item on your return until the period of limitations for that return runs out. The IRS defines that period as the time in which you can amend a return to claim a credit or refund, or the IRS can assess more tax. For most people it is 3 years. The IRS says returns filed before the due date are treated as filed on the due date. The years in the table count from the filing date unless noted. Situation How long to keep records (IRS) None of the situations below apply 3 years from the date you filed your original return You file a claim for credit or refund after you file 3 years from the date you filed, or 2 years from the date you paid the tax, whichever is later You claim a loss from worthless securities or a bad debt deduction 7 years You do not report income you should report, and it is more than 25% of the gross income on your return 6 years You do not file a return Indefinitely You file a fraudulent return Indefinitely Employment tax records At least 4 years after the tax is due or paid, whichever is later Count from your own filing date. If you filed late or amended a return, ask your CPA how the dates apply. ## Should I keep copies of my filed tax returns? Yes. The IRS says to keep copies of your filed tax returns. They help you prepare future returns and make computations if you file an amended return. A copy of each return is also your starting point if the IRS sends a letter about that year. Many people keep the returns far longer than the supporting records. A return takes little space and holds your history of income and deductions. Keep it with its filing confirmation or a signed copy. If a notice arrives, read [what to do when you get an IRS notice](https://wallacecpa.multisites.ai/guides/irs-notice-what-to-do). The records you kept are the first thing you will need. ## How long do I keep records for my house, investments and business assets? Keep property records until the period of limitations expires for the year you dispose of the property. The IRS says you need them to figure depreciation, amortization or depletion deductions, and to figure gain or loss when you sell or otherwise dispose of the property. That means a record may last many years. Examples are a home purchase closing statement, improvement receipts, stock purchase confirmations and equipment invoices. These records support your [cost basis](https://wallacecpa.multisites.ai/glossary/cost-basis), which affects your capital gains or loss when you sell. They also support [depreciation](https://wallacecpa.multisites.ai/glossary/depreciation) on business assets. The IRS adds a rule for property received in a nontaxable exchange. Your basis in the new property is tied to the old property. Keep records on both until the period of limitations expires for the year you dispose of the new property. Here is a quick example in words. You buy a rental property in one year and sell it many years later. Keep the purchase and improvement records until the limit runs out for the year of sale, not the year of purchase. ## How long do I keep payroll and employment tax records? Keep employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. This applies to employers. It covers records behind [payroll tax](https://wallacecpa.multisites.ai/glossary/payroll-tax) deposits and returns, such as quarterly filings and year-end wage statements. Employers should keep a clear file for each employee and each filing period. Because the 4-year clock starts at the due date or payment date, keep the whole set for each quarter and year together. If you run payroll yourself and fall behind, ask a CPA for help. See [payroll services](https://wallacecpa.multisites.ai/services/payroll) for what the firm lists. ## How long should small businesses keep bookkeeping records? Keep the books and the documents that support them for at least as long as the return that uses them. IRS Publication 583 says your records must support the income, expenses and credits you report, and must be available to the IRS. Your books and supporting documents work as a set. Keep sales records, bank and card statements, invoices, bills, receipts, contracts, payroll records and your accounting file. Keep year-end reports with each return. Read [small business bookkeeping setup and a monthly routine](https://wallacecpa.multisites.ai/guides/small-business-bookkeeping-routine) for a routine that keeps documents organized as you go. The small business tax calendar shows the filing dates that start each retention clock. ## Can I store records electronically? Yes, if the electronic system meets the IRS requirements. Publication 583 says all requirements that apply to paper books and records also apply to electronic storage systems. The system must index, store, preserve, retrieve and reproduce the records. The IRS says you may destroy the original hard copy only after you test that the electronic system reproduces the records and you have procedures to keep it compliant. Keep any other records that the law requires. Practical habits help. Scan documents at a readable quality. Name files by year and type. Keep a second backup copy in a different place. Use a secure method to share documents with your CPA, such as [send a file](https://wallacecpa.multisites.ai/send-a-file) or the client portal. ## Which records belong in my tax file each year? Build one folder per tax year and put the same kinds of papers in each. A steady habit makes it easy to find a record when a question comes up years later. It also makes it clear which year you can clear out first. Record type Examples Keep with Income Wage statements, 1099 forms, sales records, bank deposit detail The return for that year Deductions and credits Receipts, mileage logs, charity letters, education and health statements The return for that year The return itself Filed return, filing confirmation, any amended return Permanent file Property Closing statements, improvement receipts, purchase confirmations Property file, until the limit runs out for the year you dispose of it Payroll Quarterly filings, year-end wage statements, deposit records Payroll file, at least 4 years Add a short index page to each folder. List what is inside and the date it can go. When you scan a paper, name the file with the year and the type, such as “2026 income 1099”. ## What should I do with records I no longer need for taxes? Check for other needs before you discard them. The IRS says that when records are no longer needed for tax purposes, do not discard them until you check whether you must keep them longer for other purposes. Insurance companies and creditors may require a longer period. When you do discard records, shred paper that shows account numbers, Social Security numbers or other private data. Delete digital copies securely. Use this short checklist. 1. Find the oldest tax year you still need. 2. Check the table above for any longer rule that applies. 3. Check property, loan and insurance needs. 4. Keep the filed returns. 5. Shred or securely delete what is left. ## Next step Pick one folder, paper or digital, and sort your records by tax year this month. For help with a return or with what to keep, see [tax preparation](https://wallacecpa.multisites.ai/services/tax-preparation), call (877) 682-1171 or use the form at [/contact](https://wallacecpa.multisites.ai/contact). The [Texas family tax guide](https://wallacecpa.multisites.ai/guides/texas-family-tax-guide) covers other records families often keep. This guide is general information, not advice for your situation. Talk to a CPA about your own situation before you act. ## Frequently asked questions ### How long should I keep my tax returns? The IRS says to keep copies of your filed tax returns. They help you prepare future returns and make computations if you amend a return. Many people keep returns much longer than the supporting receipts. ### How long should I keep receipts for my taxes? Keep receipts that support an item on your return until the period of limitations for that return runs out. For most returns, that is 3 years from the date you filed. The periods are longer in the situations listed in this guide. ### How long do I keep payroll records? The IRS says to keep employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. ### How long do I keep records for my house or business assets? Keep them until the period of limitations expires for the year you dispose of the property. You need them to figure depreciation and any gain or loss when you sell. ### Can I scan documents and shred the paper? The IRS allows electronic storage if the system meets its requirements and has been tested. Read the IRS rules before you shred originals, and keep other records the law requires. ## Terms on this page - [Capital gains](https://wallacecpa.multisites.ai/glossary/capital-gains) - [Depreciation](https://wallacecpa.multisites.ai/glossary/depreciation) - [Bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) - [Payroll tax](https://wallacecpa.multisites.ai/glossary/payroll-tax) - [Cost basis](https://wallacecpa.multisites.ai/glossary/cost-basis) ## Sources 1. [IRS: How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) 2. [IRS Publication 583: Electronic records](https://www.irs.gov/publications/p583) Written by Wallace CPA and checked against the sources above on October 21, 2026. Tax rules and dates change, so check the linked page before you act. General information, not advice for your situation. ## Keep reading - [Taxes for Texas individuals and familiesTexas has no state income tax, so most Texas families file only a federal income tax return. They still deal with property tax, sales tax and life events that...](https://wallacecpa.multisites.ai/guides/texas-family-tax-guide) - [Got an IRS notice? How to read it and what to do firstRead the whole notice, find its CP or LTR number, and note the reply date. A CP2000 is a proposal to change your return, not a bill.](https://wallacecpa.multisites.ai/guides/irs-notice-what-to-do) - [Small business bookkeeping setup and a monthly routineStart with a separate business bank account, a simple chart of accounts and one place for receipts.](https://wallacecpa.multisites.ai/guides/small-business-bookkeeping-routine) - [Texas business taxes, explained for small business ownersTexas has no state income tax, but a business can still owe several others. The main ones are the franchise tax, sales and use tax, property tax on business...](https://wallacecpa.multisites.ai/guides/texas-business-taxes) - [IRS payment plans and offers in compromise: what each one isAn IRS payment plan lets you pay a tax bill over time. An offer in compromise asks the IRS to accept less than the full amount. The IRS decides each case.](https://wallacecpa.multisites.ai/guides/irs-payment-plans-and-offers-in-compromise) - [How to protest your property tax value in Tarrant and Denton countiesIn Tarrant and Denton counties, you protest your property value with your county appraisal district.](https://wallacecpa.multisites.ai/guides/property-tax-protest-tarrant-denton) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092