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Record Keeping Guidelines

Have you ever wondered how long you need to keep your tax documentation?

Here are a few things the IRS wants you to know about recordkeeping:

In most cases, the IRS does not require you to keep records in any particular manner. Generally, you should keep any and all documents that may have an impact on your federal tax return. It’s a good idea to have a designated place for tax documents and receipts.

Individual taxpayers should generally keep the following records supporting items on their tax returns for at least three years:

    • Bills
    • Credit Card and other receipts
    • Invoices
    • Mileage Logs
    • Canceled, imaged, or substitute checks or any other proof of payment
    • Any other records to support deductions or credits you claim on your return

You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples would include a home purchase or improvement, stocks and other investments, IRA transactions, and rental property records

If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owner should keep include:

    • Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and forms 1099-MISC
    • Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
    • Expense documents: Canceled checks, cash register tapes, account statemetns, credit card sales slips, invoices and petty cash slips for small cash payments
    • Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks

Information for this article taken from IRS Summertime Tax Tip 2011-23. For more information see IRS Publication 552, Recordkeeping for Individuals, Publication 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses.