Tax Tip Tuesday: How Long Should You Keep Tax Documents?

Tax season may be over, but your job isn’t done yet. Knowing how long to keep your tax records can protect you in case the IRS has questions down the road.

🗂️ Keep most tax documents for at least 3 years.

This is the IRS’s standard period of limitations—the time they have to audit your return or for you to amend it. Hold on to:

• Filed tax returns

• W-2s, 1099s

• Receipts for deductions

• Donation letters

• Bank and credit card statements used for tax purposes

  
  

⏳ Keep them longer if…

• 6 years: You underreported income by more than 25% (accidentally or not)

• 7 years: You claimed a bad debt deduction or wrote off a worthless investment

• Indefinitely: You didn’t file a return, or filed one with fraud

  
  

📉 What happens if you toss them too soon?

If the IRS audits you and you don’t have the documentation to prove your case, you could owe back taxes, interest, and penalties. No paperwork = no proof.

🔒 Final Tip:

Store copies digitally (securely) as a backup. And when it’s time to dispose of old records, shred them—don’t just toss them.

If you need any assistance with preparing your tax return please email us at may.sung@krostcpas.com