Suggested Holding Periods for Tax Records:
- It is a good policy to save copies of your 1040 and supporting schedules indefinitely.
- 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)
- 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.
- HOLD INDEFINITELY
* All papers and receipts that deal with any purchase, sale and major improvement of your current and all previous principal residences.
* All IRA records, investment purchases and sales, and 1040 returns filed for each year.