General Guidelines for Record Retention

Keep tax returns and supporting paperwork related to your income, expenses, home, and investments for at least three years after filing. After three years, the statute of limitations generally expires for IRS to audit a return and assess additional tax.
The IRS can look back six or seven years if you fail to report income or claim a loss for a bad debt or worthless securities.
Keep records on assets such as stocks, bonds, and your home until the statute of limitations expires for the tax year in which you sell them.
Dispose of old tax documents securely by shredding them or using a shredding service.

Guidelines for Business Owners

Property Records: Keep documents that substantiate your cost basis, depreciation, and the sale of the asset. Retain these records for the duration of your property ownership, plus an additional seven years after the sale.
Employee and Payroll Records:
- Retain earnings and withholding records for a minimum of four years after the tax is due or paid.
- Maintain employee records for at least three years following an employee's departure from the company. This ensures adherence to IRS and Department of Labor regulations.
Travel and Business Expense Records: Keep receipts, mileage logs, and related documentation for a minimum of three years in line with audit timelines.
Sales Tax Filings: Retention periods can vary by state, but most jurisdictions suggest keeping records for three to seven years. Be sure to verify with your state's tax authority.