Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe they’re safe provided they retain their documents for this period of time.
However, if the IRS believes you have significantly under-reported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit. To be safe, use the following guidelines.
| Business Records To Keep… | Personal Records To Keep… |
| 1 Year | 1 Year |
| 3 Years | 3 Years |
| 6 Years | 6 Years |
| Forever | Forever |
| Special Circumstances | |
Caution: Identity theft is a serious threat in today’s world, and it is important to take every precaution to avoid it. After it is no longer necessary to retain your tax records, financial statements, or any other documents with your personal information, you must dispose of these records by shredding them and not disposing of them by merely throwing them away in the trash.
© 2010 – 2011, Bruce Mc. All rights reserved.



















