Retention Checklist
Individual Record Retention Checklist
How Long to Keep Tax & Personal Financial Records
Keeping tax and financial records is an important part of protecting yourself in the event of an IRS inquiry, audit, or financial review. While there are general guidelines for how long documents should be retained, requirements can vary based on your specific tax situation.
Tax Records
- Individual tax returns – Keep at least 7 years
- W-2s, 1099s, receipts – Keep 7 years
- State and local tax records – Keep 7 years
Financial Records
- Bank statements – Keep 3–7 years
- Investment records – Keep until sold + 7 years
- Retirement account statements – Keep permanently
Property & Insurance Records
- Home purchase documents – Keep permanently
- Home improvement records – Keep as long as owned + 7 years
- Insurance policies – Keep as long as active + 3 years
Important Notes
- Retention periods may be longer in cases of fraud, underreported income, or special circumstances
- Electronic copies are generally acceptable if records are clear and accessible
- Some documents should never be discarded, especially those related to property ownership or investment
Need Help Applying This to Your Situation?
Every taxpayer’s situation is different. If you have questions about which records apply to you—or would like help determining what you can safely discard—we’re here to help.
Contact our office for personalized guidance and peace of mind.
Business Record Retention Checklist
How Long to Keep Tax, Payroll & Financial Records
Proper record retention is a critical part of operating a business and maintaining compliance with federal, state, and employment regulations. Keeping records for the appropriate length of time can help protect your business in the event of an audit, legal inquiry, or financial review.
Tax & Financial Records
- Business tax returns – Keep permanently
- General ledger and financial statements – Keep permanently
- Accounts receivable and payable records – Keep at least 7 years
- Bank statements and reconciliations – Keep 7 years
Payroll & Employment Records
- Payroll records (wages, withholding, benefits) – Keep at least 4 years
- Employee personnel files – Keep 7 years after termination
- Employment tax records (Forms 941, 940, W-2, W-3) – Keep at least 4 years
Legal & Asset Records
- Business formation documents (articles, bylaws, operating agreements) – Keep permanently
- Contracts, leases, and agreements – Keep permanently
- Asset purchase and depreciation records – Keep as long as owned + 7 years
Important Notes
• Record retention requirements may extend beyond these guidelines in cases of audits, legal matters, or regulatory obligations
• Electronic records are generally acceptable when they are accurate, legible, and readily accessible
• Documents designated for permanent retention should be stored securely and backed up on a regular basis
Need Help Creating a Record Retention Plan?
Every business has unique recordkeeping needs. If you would like assistance in applying these guidelines to your business—or developing a record retention plan tailored to your operations and compliance requirements—we’re here to help.
Disclaimer
This checklist is provided for informational purposes only and does not constitute tax or legal advice. Record retention requirements may vary based on business structure, industry, and individual circumstances. Please consult a qualified tax professional regarding your specific situation.