Most people either keep too little (and discover this problem during an audit) or keep everything forever (drowning in boxes of old paperwork). The IRS has specific rules for how long you need to keep different types of records — and knowing them protects you without burying you.
The general rule: 3 years
The standard IRS statute of limitations for auditing your return is 3 years from the date you filed (or the due date of the return, whichever is later). So for most records, keeping them for 3 years after you file covers you.
When you need to keep records longer
| Situation | How long to keep |
|---|---|
| Standard tax records (income, deductions) | 3 years from filing date |
| Employment tax records | 4 years |
| If you underreported income by more than 25% | 6 years (IRS has 6 years to audit) |
| Property records (house, investments) | As long as you own it, plus 3 years |
| Business records (if self-employed) | 7 years recommended |
| Fraudulent returns or no return filed | No statute of limitations — keep indefinitely |
What records specifically?
The IRS doesn’t specify exact forms — they care that you can substantiate your return. Keep whatever proves your income and deductions:
- Income: W-2s, 1099s, bank statements, invoices, contracts
- Business deductions: Receipts, credit card statements, mileage logs, invoices
- Home office: Utility bills, rent/mortgage statements, proof of exclusive business use
- Vehicle: Mileage log (date, destination, purpose, miles — kept contemporaneously)
- Investments: Brokerage statements, purchase confirmation, cost basis records
- Charitable donations: Receipts for all cash donations; appraisals for property over $5,000
Digital records are fine
The IRS accepts digital records — scanned receipts, PDFs, and electronic records. The key requirement is that they be accurate, complete, and retrievable. Cloud storage (Google Drive, Dropbox) works fine. Just make sure your storage is backed up.
Mileage logs: the most commonly missing record
The IRS requires a contemporaneous mileage log — meaning you record it at the time, not reconstruct it later from memory. Apps like MileIQ, Everlance, or even a simple spreadsheet work fine. Recreating a year of mileage from credit card statements alone won’t satisfy an examiner.
When you can safely shred
For most people, tax records older than 7 years are safe to discard. The exception: property records (keep these until you sell the asset plus 3 years) and any records related to a return you think might have underreported income significantly.