1. There isn’t a simple answer to this. The general rule is that tax returns should be kept for at least three years, although the answer will vary depending on the type of document and the type of activities you have been involved in.
  2. If more than 25% of income is missing from a return, the IRS has a six-year lookback period. There is no cap if fraud is established.
  3. Hold on to the documents that form the property’s foundation if you own real estate. Keep the documents for at least three years after you’ve sold the property. The same is true for securities sales (mutual funds, stocks and the like).
  4. After the employee’s income tax return filing deadline, businesses must preserve payroll tax records for at least 4 years. W-4 forms, payroll reports, and the sums and dates of tax deposits fall under this category.
  5. After the filing deadline has passed, businesses must retain copies of employee health coverage forms for at least 3 years.
  6. Records pertaining to asset expenses, depreciation, etc. should be kept for many years.