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IRS Record Retention

Your Key to Financial Compliance

Pro Tax Solvers - Your Trusted Tax Experts

Welcome to Pro Tax Solvers, your premier partner in navigating the complex world of tax compliance. We understand the importance of maintaining impeccable financial records, especially when it comes to the Internal Revenue Service (IRS). In this comprehensive guide, we will explore the essential aspects of IRS record retention, emphasizing the significance, urgency, and professionalism required to keep your financial affairs in order.

Why IRS Record Retention Matters

The IRS is vigilant when it comes to ensuring that taxpayers meet their obligations. Maintaining accurate and organized records is not only a matter of good business practice but also a legal requirement. The IRS has established guidelines for record retention to help individuals and businesses substantiate their income, deductions, and credits, should they be subject to an audit or review.

Key Record Retention Periods

Different types of financial records have varying retention periods. While the specific rules may change over time, here are some general guidelines to follow:

1. Tax Returns

Keep copies of your filed tax returns for at least three years from the filing date. If you file a claim for a credit or refund after filing, you should retain your records for seven years from the date you filed the original return.

2. Supporting Documents

Retain all supporting documents, such as W-2s, 1099s, receipts, and invoices, for at least three years from the date you filed the return.

3. Property and Asset Records

Keep records related to property and assets for at least three years after the tax return that includes the income or loss from the property or asset is filed.

4. Business Records

If you own a business, maintain employment tax records for at least four years and all other records for at least three years.

5. Long-term Investments

Records related to long-term investments, such as stocks and bonds, should be kept for at least three years after you sell or dispose of them.