Retaining and storing your income tax records is an important final step of your tax filing responsibility. This should serve as a refresher on the rules for keeping your tax records.
The general rule for retaining records is that such books and records must be kept as long as they may be relevant to your claim for a tax credit or refund, or to an Internal Revenue Service attempt to assess additional tax for the year in question. We recommend the following document retention periods as general guidelines. In some cases, the retention period recommended may be for non-tax reasons, for example, real estate records should be kept forever for environmental liability exposure reasons among others.
We hope this brief overview helps you understand the income tax record retention periods. If you have any questions regarding the above retention periods, please do not hesitate to give us a call.