How long should I keep records?

---

Period of Limitations that apply to income tax returns.

1. Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
2. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later if you file a claim for credit or refund after you file your return.
3. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
4. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
5. Keep records indefinitely if you do not file a return.
6. Keep records indefinitely if you file a fraudulent return.
7. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

Property: Generally, keep records relating to the property until the period of limitations expires for the year in which you dispose of the property. 

Retention periods for firm operations and client records.

Firm accounting records 

1. Annual and monthly financial reports – 7 years 
2. Bank statements and bank reconciliations – 7 years
3. Depreciation schedules – 7 years
4. Employee expense reports – 7 years
5. General ledger detail – 7 years
6. Payroll reports filed (including Forms W-2 and 1099) – 7 years
7. Property and equipment records and invoices – 7 years after the disposal
8. Records on virtual currency and other digital assets including the transaction history, access, and security information for as long as these assets are owned
9. Vendor invoices – 7 years