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What Records Does the IRS Expect You to Keep — and For How Long?

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

SituationHow long to keep
Standard tax records (income, deductions)3 years from filing date
Employment tax records4 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 filedNo 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.