How Long to Keep Documents for the IRS (Publication)
Publication 552 from the Internal Revenue Service gives citizens guidance on how long to keep certain documents for tax audit purposes.
Click here to read the full publication.
Highlights
Keep One Month (to check against your bank and credit card statements)
• ATM receipts
• Bank deposit slips
• Credit card receipts
• Receipts for minor purchases (unless you need it for a refund or warranty purpose)
Keep One Year:
• Monthly bank and credit card statements (unless you require proof of deductions)
• Monthly mortgage statements (keep your year-end summary only)
• Monthly pay stubs (after they are checked against your W-2 or 1099)
• Cancelled Checks
Keep Seven Years:
• W-2 forms
• 1099 forms
• Receipts or annual statements for mortgage interest
• Receipts or annual statements for property taxes
• Receipts or annual statements for deductible business expenses or other tax-deductible expenses
Keep Indefinitely:
• Annual tax returns
• Year-end summary statements from financial institutions
• Receipts fro investment purchases
• Receipts for home-improvement costs or major purchases that may be needed for insurance claims or similar
For more on tidy record-keeping, we recommend Peter Walsh’s best-selling book It’s All Too Much.
To ensure compliance with U.S. Treasury Regulations governing tax practice, we inform you that any U.S. federal tax advice contained in this communication, including any appendices, is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding any penalties under U. S. federal tax law, or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.