Keep the records of your current year’s income and expenses for as long as you may be called upon to prove the income or deduction if you’re audited.

For federal tax purposes, this is generally three years from the date you file your return (or the date it’s due if that’s later), or two years from the date you actually pay the tax that’s due if the date you pay the tax is later than the due date. IRS requirements for record-keeping are as follows:

  • You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
  • You do not report the income that you should report, and it is more than 25 percent of the gross income shown on your return; keep records for 6 years.
  • You file a fraudulent return; keep records indefinitely.
  • You do not file a return; keep records indefinitely.
  • You file a claim for credit or refund* after you file your return; 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.
  • You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.
  • Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.