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Recordkeeping Requirements

Suggested Holding Periods for Tax Records:

  • 1. It is a good policy to save copies of your 1040 and supporting schedules indefinitely.
  • 2. 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) 3. 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.
  • 4. 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.