You must keep your records as long as they may be needed for the
administration of any provision of the Internal Revenue Code.
Generally, this means you must keep records that support items shown
on your return until the period of limitations for that return runs
out.
The period of limitations is the period of time in which you can
amend your return to claim a credit or refund or the IRS can assess
additional tax. The following table contains the periods of
limitations that apply to income tax returns. Unless otherwise stated,
the years refer to the period beginning after the return was filed.
Returns filed before the due date are treated as being filed on the
due date.
|
IF you... |
THEN the
period is... |
| 1 |
Owe additional tax and (2), (3), and (4) do not
apply to you |
3 years |
| 2 |
Do not report income that you should and it is
more than 25% of the gross income shown on your return |
6 years |
| 3 |
File a fraudulent return |
No limit |
| 4 |
Do not file a return |
No limit |
| 5 |
File a claim for credit or refund after you
filed your return |
Later of 3 years or 2 years after tax was
paid. |
| 6 |
File a claim for a loss from worthless
securities |
7 years |
Property.
Keep records relating to property until the period of limitations
expires for the year in which you dispose of the property in a taxable
disposition. You must keep these records to figure your basis for
computing gain or loss when you sell or otherwise dispose of the
property.
Generally, if you received property in a nontaxable exchange, your
basis in that property is the same as the basis of the property you
gave up. You must keep the records on the old property, as well as the
new property, until the period of limitations expires for the year in
which you dispose of the new property in a taxable disposition.
Keeping records for nontax purposes.
When your records are no longer needed for tax purposes, do not
disgard them until you check to see if they should be kept longer for
other purposes. Your insurance company or creditors may require you to
keep certain records longer than the IRS does.
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