Keep tax records for at least three to seven years, depending on the type of document and whether the IRS might need to review your return

The IRS can audit your tax return up to three years after you file it in most cases. That means you should keep the documents that support what you reported — receipts, invoices, bank statements, proof of deductions — for at least three years. However, some situations require you to hold onto records longer. If you underreported your income by 25 percent or more, the IRS has six years to audit you. If you never filed a return or filed a fraudulent one, there is no time limit at all.

The safest approach is to keep records for seven years. This covers the three-year standard audit window plus the six-year window for substantial underreporting, and it gives you a buffer if you need to file an amended return. After seven years, you can usually shred or delete the documents, though some records — like those tied to property or investments — may need to stay longer.

Key Takeaways

  • Keep tax returns and supporting documents for at least three years, since that is how far back the IRS can normally audit.
  • Hold records for six years if you reported less than 75 percent of your actual income, because the audit window extends to six years in that case.
  • Keep records related to home purchases, major investments, or retirement accounts for seven years or longer, since these can affect multiple tax years.
  • Store records in a safe, organized place — either a filing cabinet, safe deposit box, or scanned digital copies — so you can find them quickly if the IRS asks.
  • If you file an amended return, keep the original return and all supporting documents for the same seven-year period.

What documents to keep for three years

The core documents that support your annual tax return should be kept for three years. This includes your actual tax return (the form you filed), W-2s from your employer, 1099s for freelance income or investment earnings, receipts for deductions you claimed, bank and credit card statements that show business expenses or charitable donations, and mileage logs if you claimed a vehicle deduction.

If you own a business, keep invoices you sent to clients, receipts for supplies and equipment you bought, payroll records if you had employees, and records of any business loans. If you paid estimated taxes during the year, keep the payment confirmations. If you claimed a home office deduction, keep the square footage calculations and any receipts for office furniture or equipment you bought.

For investment income, keep the statements showing what you bought, what you sold, and the gains or losses. If you received a K-1 from a partnership or S-corporation, keep that form and any supporting schedules. Charitable donations need receipts or written acknowledgment from the charity, especially for donations over $250.

Records to keep for six years or longer

If the IRS suspects you underreported your income by a significant amount — meaning you reported less than 75 percent of what you actually earned — they can audit you for six years instead of three. To be safe, keep all income-related documents for six years. This includes bank statements showing deposits, 1099s, W-2s, and any records of cash income or side work.

Property records should be kept much longer than six years. If you bought a home, keep the purchase documents, closing statement, and receipts for any major improvements (a new roof, addition, or kitchen renovation) for as long as you own the home, plus at least three years after you sell it. The IRS can ask about the cost basis of your home years later when you report the sale, and you will need those documents to prove what you paid and what improvements you made.

Records related to retirement accounts — 401(k)s, IRAs, SEP-IRAs — should be kept for at least seven years. These accounts span multiple tax years, and the IRS may review them long after the year you opened them. If you inherited an IRA or received a distribution, keep those records for seven years minimum.

How to organize and store your records

The IRS does not care whether you keep records on paper or digitally, as long as you can produce them if asked. Many people use a filing cabinet with folders for each year, organized by category: income, deductions, charitable donations, medical expenses, and so on. Label each folder clearly with the tax year so you know which documents go with which return.

Digital storage is increasingly common and often safer than paper. You can scan receipts and documents using your phone or a document scanner, then store them in a folder on your computer or in cloud storage like Google Drive or Dropbox. If you scan documents, keep the scans organized by year and category just as you would with paper files. Make sure your digital storage is backed up — if your computer crashes, you do not want to lose seven years of tax records.

A safe deposit box at a bank is another option, especially for original documents like property deeds, investment certificates, or the closing statement from a home purchase. Safe deposit boxes cost a small annual fee but protect your documents from fire, theft, or water damage. You can keep digital copies at home and originals in the box.

When you can discard old records

After seven years have passed since you filed a return, you can safely discard the supporting documents for that year. For example, if you filed your 2016 return in April 2017, you can shred those documents in April 2024. However, do not discard records related to property, investments, or retirement accounts until you have held them for the longer period described above.

If you filed an amended return (Form 1040-X), the clock restarts for those documents. Keep the amended return and all supporting documents for seven years from the date you filed the amendment, not from the original filing date. The same rule applies if the IRS sent you a notice about your return — keep all related documents for seven years from the date of the notice.

When you do discard documents, shred them rather than throwing them in the trash. Tax returns and financial statements contain sensitive information like your Social Security number and bank account details. A paper shredder or a shredding service will destroy the documents safely.

Special situations that require longer record retention

If you are self-employed or own a business, keep records for at least seven years, even if the business is no longer active. The IRS can ask about business income and expenses years after you close the business, especially if you are claiming a loss that offsets other income.

If you claimed a loss on a rental property, keep all records related to that property for at least seven years. The IRS scrutinizes rental losses more closely than other deductions, and you may need to prove your expenses and the condition of the property.

If you received a notice from the IRS about a specific year — an audit notice, a letter about a discrepancy, or a demand for payment — keep all documents related to that year for at least seven years from the date of the notice, even if the normal retention period has passed. If the IRS is investigating a particular issue, they may ask for documents beyond the standard three-year window.

Digital records and cloud storage considerations

If you use tax software like TurboTax, H&R Block, or TaxAct, you can usually read and save a copy of your completed return as a PDF. Do this every year and store the PDF with your other tax documents. The software company may not keep your return on file indefinitely, so having your own copy ensures you have it if you need to reference it later.

For bank and credit card statements, read them from your bank's website and save them to your computer or cloud storage. Most banks keep statements online for only one to three years, so if you need a statement from five years ago, you will need your own copy. Many banks allow you to read statements in bulk, which makes this easier.

If you use accounting software for a business, export your records regularly and save them in a format that will be readable years from now. Proprietary software formats can become obsolete, so exporting to PDF or CSV (comma-separated values) is safer than relying on the software to be available in seven years.

Frequently Asked Questions

What if I lost some of my receipts or documents?

You do not need every single receipt to support your deductions. The IRS understands that people lose documents. For small expenses, a credit card statement or bank statement showing the charge is usually enough. For larger deductions, a written statement from you explaining what the expense was for can help. If the IRS audits you, explain what happened and provide whatever documentation you do have.

Do I need to keep my W-2s forever?

Keep W-2s for at least three years, but many people keep them longer because they are useful for future reference — you may need them to prove your income when explore for a mortgage or loan. After seven years, you can discard them, but there is no harm in keeping them longer.

How long should I keep records if I filed an amended return?

Keep the amended return and all supporting documents for seven years from the date you filed the amendment. If you filed an amended return in 2024 for a 2023 tax year, keep those documents until 2031.

Can I throw away receipts if I have a credit card statement showing the charge?

For most expenses, a credit card or bank statement is sufficient proof. However, for large deductions, charitable donations, or business expenses, keep the actual receipt as well. The receipt often shows details the bank statement does not, like what you bought or which charity received the donation.

Should I keep records for cryptocurrency or investment transactions?

Yes. Keep records of every buy, sell, and trade for at least seven years. The IRS treats cryptocurrency as property, not currency, so you owe tax on any gain when you sell or trade it. You will need detailed records to calculate your cost basis and gains accurately.