We have compiled a list of the most common tax and financial records that a business or an individual may need to keep and guidelines for how long the records should be retained.

The information contained in this site is of a general nature and may not be applicable to you. Please call our office for specific guidance regarding your situation.

 

Individuals

Keep One Year

• While it's important to keep year-end mutual fund and IRA contribution statements forever, you don't have to save monthly and quarterly statements once the year-end statement has arrived.

Keep Three Years

• Credit Card Statements
• Medical Bills (in case of insurance disputes)
• Utility Records
• Expired Insurance Policies

Keep Six Years

• Supporting Documents For Tax Returns
• Accident Reports and Claims
• Medical Bills (if tax-related)
• Property Records / Improvement Receipts
• Sales Receipts
• Wage Garnishments
• Other Tax-Related Bills

Keep Permanently

• CPA Audit Reports
• Legal Records
• Important Correspondence
• Income Tax Returns
• Income Tax Payment Checks
• Investment Trade Confirmations
• Retirement and Pension Records

Special Circumstances

• • Car Records (keep until the car is sold)
  • Credit Card Receipts (keep until verified on your statement)
  • Insurance Policies (keep for the life of the policy)
  • Mortgages / Deeds / Leases (keep 6 years beyond the agreement)
  • Pay Stubs (keep until reconciled with your W-2)
  • Property Records / improvement receipts (keep until property sold)
  • Sales Receipts (keep for life of the warranty)
  • Stock and Bond Records (keep for 6 years beyond selling)
  • Warranties and Instructions (keep for the life of the product)
  • Other Bills (keep until payment is verified on the next bill)

• Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset)

 

Businesses

Keep One Year

• Bank reconciliations
• Correspondence with customers or vendors
• Duplicate deposit slips
• Purchase orders (except purchasing department copies)
• Receiving sheets
• Requisitions
• Stenographer's notebooks
• Stockroom withdrawal forms

Keep Three Years

• General correspondence
• Employee personnel records (after termination)
• Employment applications
• Expired insurance policies
• Internal audit reports
• Internal reports
• Petty cash vouchers
• Physical inventory tags
• Savings bond registration records of employees

Keep Seven Years

• Accident reports and claims
• Accounts payable ledgers and schedules
• Accounts receivable ledgers and schedules
• Cancelled checks
• Expired contracts and leases
• Expense analysis and expense distribution schedules
• Inventories of products, materials and supplies
• Invoices to customers
• Notes receivable ledgers and schedules
• Expired option records
• Payroll records and summaries, including payments to pensioners
• Plant cost ledgers
• Purchasing department copies of purchase orders
• Sales records
• Cancelled stock and bond certificates
• Subsidiary ledgers
• Time books
• Voucher register and schedules
• Voucher for payments to vendors, employees, etc.

Keep Permanently

• Audit reports of accountants
• Cash books, charts of accounts
• Cancelled checks for important payments
• Contracts and leases still in effect
• Correspondence on legal and other important matters
• Deeds
• Mortgage and bills of sale
• Depreciation schedules
• Financial statements (end-of-year)
• General ledgers (and end-of-year trial balances)
• Insurance records, current accident reports, claims, policies
• Journals
• Minute books of directors and stockholders
• Property appraisals by outside appraisers
• Property records
• Tax returns and worksheets, revenue agents' reports and other documents relating to determination of income tax liability
• Trademark registrations