How long are you required to keep records

I believe IRS can review your return 3 years after filing, unless they uncover fraud at which point there is no time limit. Scanned copies are OK.

 

Best advice, untill the day you are no longer alive...

 

3 years unless they find something wrong, then 7 years.

 

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.

SOURCE: IRS.gov

 

Covered in this pub.

 

Sure.. I got audited in 2011 for 2008.... Luckily I kept at least 10 years worth of records..

 

It is so simple to file and stash away documents, receipts, etc for a tax year after you file the return. Just go to Office Depot and get a box to store the annual files and stash it away for the next year's paperwork to be added. Keep the box at home, at a storage locker, whatever. The 3 year thing is recommended by the IRS. You going to trust the entity that is going to try to find you did something wrong and take more of your money with telling you how long to keep something? They can go back further than 3 years if they get the idea you did something wrong. That 3 years a just a general guideline, it is not a legal limit on what the IRS can do if it wants to.

 

7 years, I got them going back 7 years last year, found a mistake with my mortgage which triggered the audit - not my fault but the banks - and then they pulled every year out and examined each year separately. my accountant said if they needed records to confirm it, I would have to provide it.