Keep federal tax returns for at least three years
The Internal Revenue Service (IRS) can audit your return up to three years after you file, so you should keep your federal tax return and all documents that support it for at least that long. This is the baseline rule for most taxpayers in most situations.
The three-year window starts from the date you file, not from the date the tax year ends. If you file your 2023 return on April 15, 2024, the three-year period runs until April 15, 2027. After that date passes, the IRS generally cannot go back and audit that return.
However, three years is a minimum, not a maximum. There are situations where you should hold onto records longer, and there is no harm in keeping them indefinitely if you have the space.
Key Takeaways
- Keep your federal tax return and supporting documents for at least three years from the filing date, since that is how long the IRS has to audit you.
- Keep records for six years if you reported less income than you actually earned, because the IRS has a longer window to pursue underreporting.
- Keep records indefinitely for any return that claimed a loss, because there is no time limit on audits related to loss carryforwards.
- Supporting documents include W-2s, 1099s, receipts, invoices, bank statements, and anything else you used to calculate the numbers on your return.
- You can store originals in a safe place and keep digital copies or scans for faster reference, as long as you can produce the originals if asked.
Extend to six years if you underreported income
If you reported less income than you actually received, the IRS has six years to audit you instead of three. This is a longer statute of limitations, and it applies even if the underreporting was unintentional.
The difference between three and six years matters most if you are self-employed, receive cash payments, or have multiple income sources. If there is any chance a discrepancy could be found between what you reported and what a third party reported to the IRS (such as a 1099 from a client or a W-2 from an employer), keeping records for six years removes the risk of being caught off-guard after year three.
You do not need to guess whether you underreported. If you filed accurately and reported all income you received, the three-year rule applies. The six-year rule only kicks in if there is actual underreporting.
Keep records indefinitely for losses and carryforwards
If your return claimed a loss — whether a business loss, capital loss, or net operating loss — you should keep those records indefinitely. The IRS has no time limit to audit a return that involves a loss, because losses can be carried forward to future years and reduce your tax liability for many years to come.
For example, if you claimed a $10,000 business loss in 2023 and carried $5,000 of it forward to 2024, the IRS could theoretically audit your 2023 return in 2030 to verify that loss was real. Keeping the supporting documents means you can prove it if they do.
The same indefinite rule applies if you claimed a carryforward from a previous year — such as an unused capital loss from 2022 that you applied to 2023. Keep the records from the year the loss originated, not just the year you used it.
What documents count as supporting records
Supporting documents are anything you used to fill out your return. For most people, this includes W-2s from employers, 1099s from clients or financial institutions, and receipts for deductions you claimed. For business owners, it includes invoices, expense receipts, mileage logs, and bank statements. For investment income, it includes brokerage statements and confirmation of cost basis.
The IRS does not require you to send these documents with your return — you only need to produce them if you are audited. But you do need to have them. If the IRS asks for proof that you spent $5,000 on office supplies and you cannot find the receipts, you lose the deduction even if you actually spent the money.
Keep originals or clear copies. Digital scans are acceptable as long as you can produce the original if the IRS requests it. Many people photograph receipts with their phone, store them in a folder on their computer, and delete the paper copies after a year or two. This works fine as long as the photos are legible and you can retrieve them quickly.
Organize records by tax year, not by document type
The easiest system is to create a folder for each tax year and put everything related to that year inside it — your return itself, all W-2s and 1099s, receipts, bank statements, and anything else you used to prepare it. Label the folder with the year (for example, "2023 Tax Return") and store it in a consistent place.
If you use tax software or work with a tax preparer, they may give you a checklist of documents to gather. Use that checklist as your guide for what to keep. If you prepare your own return, go through it line by line and ask yourself: what document proves this number? Keep that document.
For digital records, the same principle applies. Create a folder on your computer or cloud storage for each year, and put scans and digital files inside. Make sure the folder name includes the year so you can find it quickly if you need it years later.
When you can safely discard old records
Once the relevant time period has passed, you can discard records. For a return with no losses or underreporting, you can discard supporting documents four years after filing. For a return with underreporting, you can discard them seven years after filing. For a return with losses, there is no safe discard date — keep them as long as you keep the return itself.
Before you discard paper documents, shred them or tear them up. Tax records contain personal information like your Social Security number, bank account numbers, and income details. Do not throw them in the trash intact.
You should keep the actual tax return (the Form 1040 or whatever form you filed) longer than the supporting documents. Many people keep returns indefinitely because they take up little space and may be needed to prove income for a mortgage, loan, or background check years later. There is no downside to keeping them forever.
Special situations that change the timeline
If you did not file a return for a particular year, the statute of limitations never starts. The IRS can audit you at any time. If you filed a fraudulent return, there is also no time limit. These are rare situations, but they mean you should keep records for any year you did not file or any year you know contained errors.
If you are involved in a business partnership or own rental property, the rules can be more complex because the IRS may audit the partnership or property separately from your personal return. Ask your tax preparer or accountant whether you should keep records longer in these cases.
If you claimed a home office deduction or depreciation on business property, keep those records for at least three years after you sell the property or stop claiming the deduction. The IRS may want to verify the basis and depreciation when you report the sale.
Frequently Asked Questions
Can I throw away my tax return after three years?
You can discard supporting documents after three years (or six if you underreported income), but most people keep the actual return itself much longer — often indefinitely. The return itself takes up almost no space and may be useful for proving income to a lender or employer years later. Shred any documents you do discard.
Does the IRS contact you before an audit, or can they just show up?
The IRS almost always contacts you by mail first. They will tell you which year is being audited and which items they want to examine. You then have time to gather the documents and respond. They do not show up unannounced at your home or business for a routine audit.
What if I lost my receipts but kept my bank statements?
Bank statements can serve as supporting evidence for expenses, though they are not as strong as original receipts. If you are audited and cannot produce receipts, the IRS may accept bank statements showing the payment, credit card statements, or other records that corroborate the expense. It is better to have something than nothing, but original receipts are always preferable.
Do I need to keep records for state taxes too?
Yes. Most states have their own statute of limitations for audits, which is often three to four years but varies by state. Keep your state return and supporting documents for at least as long as your state allows. If your state has a longer window than the federal three-year rule, follow your state's timeline instead.
Is it safe to scan my tax documents and throw away the originals?
Yes, as long as the scans are clear and legible. Many people photograph receipts with their phone or scan documents with a scanner and store the files on their computer or cloud storage. The IRS accepts digital copies as evidence. Keep the originals in a safe place for at least the required time period, but you can discard them once you have verified the scans are readable.