Record Retention Guide
When in doubt, contact the IRS!
Record retention is a complex subject and you should always as your Enrolled Agent or contact the IRS directly if you have questions.
Does Record Retention Even Matter?
First, you can’t file accurate and complete tax returns without accurate records. You make a lot of work for yourself if you have to pull information together at the last minute; possibly overlooking critical information that might save you money! And, you might miss a tax deadline while you get information that you have lost…costing you a longer wait for that potential refund and possibly causing IRS tax penalties. And in the event of an audit, complete and accurate records will minimize any problems. Tax reasons aside, having good records will
- help you with your annual budget and help you plan to save money routinely
- provide documentation in the case of a return of an item or warranty issue
- a lender or insurance company may need information in case of a loss or other issue (note that this may mean that you need to save some information longer than the IRS minimum retention periods)
IRS Requirements
IRS will require you to keep your documentation (tax return, records, forms, worksheets, etc.) as long as they have the right to audit the return.
You probably want to keep these documents until after the deadline to amend the return for incorrect information or to claim a tax credit or refund.
