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Nicholas
P. DiNatale, CPA -
Certified Public Accounting & Business Advisory
Taxpayer
Resources -
FAQ
How long
do I keep my tax records?
Most individual
taxpayers will want to maintain their tax records in the event of a tax
audit. Of course there are other reasons, such as when dealing with the
bank, or for long-term research. Before making a final decision to retain
or dispose of any specific records, be sure to consult your tax advisor,
(if you also operate a small business, refer to our record retention suggestions
in our Small Business FAQ section.) The following is a guide to assist
in making decisions on how long to store your business records:
Keep Three
Years:
- Employment
agreements, health insurance documentation (keep 3 years after leaving
your job).
- Insurance
policies (period beginning after expiration date)
- Utility,
credit card and other monthly statements if not used for business
Keep Seven
Years:
- Individual
income tax returns, schedules and supporting documentation (W-2 forms,
1099 forms, mortgage interest statements, real estate tax bills, etc.)
- Check
books, bank statements, canceled checks and bank statement reconciliations
- Insurance
records, accident reports and claim details
- Personal
loan agreements with anyone or any company (keep 7 years after satisfaction
of the debt)
Keep Indefinitely:
- Tax authority
audit determination letters and related tax returns and supporting documentation
- Deeds
and titles to vehicles, land, homes, time-share property, etc.
- Mortgage
agreements and closing statements
- Independent
appraiser’s property assessments
- Estate
tax returns (form 706)
- Stock
and investment transaction settlement sheets, monthly statements and
other valuation information
- IRA and
other self-directed retirement plan contribution details, including
amount, date, account number and whether it was deducted
- Personal
bankruptcy filings and related correspondences
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