How long the IRS requires you to keep tax records

The Internal Revenue Service (IRS) generally requires you to keep tax records for at least three years from the date you file your return or the return's due date, whichever is later. This three-year window covers most situations: if the IRS audits you, they typically look back no further than this period.

However, three years is a floor, not a ceiling. If you underreport income by 25 percent or more, the IRS can go back six years. If you file a fraudulent return or don't file at all, there is no time limit — the IRS can pursue you indefinitely. If you claim a loss from a worthless security or a bad debt deduction, keep those records for seven years.

The clock starts from the later of two dates: the day you actually filed your return, or April 15 of the year the return was due. If you filed your 2023 return on February 1, 2024, the three-year window closes February 1, 2027. If you filed it on June 1, 2024, the window still closes April 15, 2027, because that was the original due date.

Key Takeaways

  • Keep all tax records for at least three years from when you filed or the return was due, whichever is later.
  • If you underreport income by 25 percent or more, the IRS can audit you for six years, so keep those records longer.
  • Records tied to property, investments, or business losses may need to be kept seven years or longer depending on the type of deduction.
  • State tax agencies often have their own retention rules that differ from federal requirements, so check your state's rules separately.
  • Receipts, invoices, and bank statements should be kept as long as the tax records they support, since they prove what you reported.

What counts as a tax record you need to keep

A tax record is anything that proves what you reported on your return. This includes your actual tax return (federal and state), all supporting documents, receipts, invoices, bank statements, cancelled checks, credit card statements, and written communications with the IRS or your state tax agency.

For income, keep pay stubs, 1099 forms, W-2 forms, and any other documents showing money you received. For deductions, keep receipts and invoices for medical expenses, charitable donations, business expenses, mortgage interest statements, property tax bills, and state income tax payments. For investments, keep purchase confirmations, sale confirmations, dividend statements, and brokerage statements showing your cost basis.

If you own a business or rental property, the rules are stricter. Keep all business income records, expense receipts, payroll records, and depreciation schedules for at least seven years. Many accountants recommend keeping business records indefinitely, since the IRS can challenge depreciation deductions for as long as you own the property.

State tax record retention rules

Most states follow the federal three-year rule, but some require longer. California, for example, requires four years. New York requires three years for most returns but six years if you underreport income. Illinois requires five years. Check your state's tax agency website for the exact rule in your state, since these requirements change and vary by return type.

If you file in multiple states — because you worked in one state and lived in another, or because you own rental property in another state — you need to follow the retention rule for each state where you filed. This often means keeping records longer than the federal minimum. If one state requires six years and another requires three, keep your records for six years to cover both.

How long to keep records for specific situations

Records tied to property you still own should be kept as long as you own it, plus three years after you sell. If you bought a house in 2015 and sell it in 2024, keep the purchase documents, improvement receipts, and sale documents until 2027. The IRS uses these to calculate your cost basis and capital gains tax.

If you claim a home office deduction, keep those records for three years after you stop claiming the deduction, not just three years from when you filed. The same applies to depreciation on rental property or business equipment — keep the records for three years after you dispose of the asset.

For retirement accounts like IRAs or 401(k)s, keep contribution records and distribution statements indefinitely. The IRS may ask you to prove you contributed to an account or took a distribution years after the fact, and you cannot reconstruct this from tax returns alone. If you inherit an IRA, keep the inherited account statements and distribution records for at least seven years.

Digital records and how to store them safely

You can keep tax records in digital form — scanned documents, PDFs, or photos of receipts — as long as the image is clear and complete. The IRS does not require you to keep paper originals if you have a legible digital copy. Many people photograph receipts with their phone and store them in a folder on their computer or cloud storage.

Use a system you can actually retrieve from. A folder on your computer labeled "2024 Taxes" with subfolders for "Income," "Deductions," and "Receipts" works. So does a cloud service like Google Drive, Dropbox, or OneDrive, which also backs up your files automatically. Do not rely on email alone — emails can be deleted or lost if you change providers.

If you use accounting software like TurboTax or tax preparation software, export and save a copy of your return and all supporting documents outside the software. Tax software companies sometimes delete old records after a certain period, and you need your own backup. Keep a copy of your actual filed return (the PDF the IRS sends you after e-filing, or a copy of the paper return you mailed) in your records folder.

When you can safely discard old tax records

After the retention period has passed, you can discard the records. For a 2020 return filed in April 2021, the three-year window closes April 15, 2024. After that date, you can shred or delete the supporting documents. However, if you have any reason to think the IRS might audit you — if you claimed large deductions, had unreported income, or received an IRS notice — keep the records longer.

Before you discard records, shred paper documents or use a find deletion tool for digital files. Tax records contain your Social Security number, bank account information, and other sensitive data. Do not throw them in the trash or straightforward delete them from your computer's trash bin.

If you are unsure whether to keep a record, the safest choice is to keep it. Storage is cheap. The cost of reconstructing records if the IRS audits you is expensive.

Frequently Asked Questions

What if I filed my tax return late — does the three-year clock start from when I filed or from the original due date?

The clock starts from whichever is later: the date you actually filed or the original due date. If your 2023 return was due April 15, 2024, but you filed it on August 1, 2024, the three-year window closes April 15, 2027 — not August 1, 2027. The IRS uses the original due date as the starting point.

Do I need to keep receipts if I have the credit card statement showing the charge?

A credit card statement alone usually is not enough. The IRS wants to see what you actually bought, not just that you spent money. Keep the receipt or invoice along with the statement. For charitable donations, you need a written acknowledgment from the charity, not just a credit card charge. For medical expenses, you need itemized receipts showing what service or item you paid for.

How long do I keep records for a business I sold or closed?

Keep business records for at least seven years after you close the business, even if you no longer file business tax returns. The IRS can still audit prior years and may ask about income, expenses, or depreciation from when the business was operating. If you sold the business, also keep the sale documents and any correspondence with the buyer for at least three years after the sale.

Can I throw away my old tax returns if I have them backed up in the cloud?

Yes, once you have a clear digital copy stored safely, you can discard the paper originals. Make sure the digital copy is readable and complete — test it by opening it on a different device to confirm. Keep the digital copy in at least two locations (your computer and cloud storage, for example) so you do not lose it if one device fails.

What if the IRS contacts me about a return from five years ago?

If the IRS sends you a notice about a return outside the normal three-year window, it means they believe you underreported income by 25 percent or more, which extends the limit to six years. Gather all records related to that return — income documents, expense receipts, and any correspondence with the IRS — and respond to the notice. Do not discard records once the IRS has contacted you about them, even if the retention period has technically passed.