Good record keeping can cut your taxes and make your financial life easier.

How long to keep records is a combination of judgment and state and federal statutes of limitations. Since federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects underreported income, it's wise to keep tax records at least seven years after a return is filed. Requirements for records kept electronically are the same as for paper records.

Generally, follow these recommended retention periods for various documents. If you have questions, or would like help with your individual records, please contact us.

Tax returns (uncomplicated) 7 years
Tax returns (all others) permanent
W-2s 7 years
1099s 7 years
Cancelled checks supporting tax deductions 7 years
Bank deposit slips 7 years
Bank statements 7 years
Charitable contribution documentation 7 years
Credit card statements 7 years
R eceipts, diaries, logs for tax returns 7 years
Investment purchase receipts ownership + 7 years
Dividend reinvestment records ownership + 7 years
Year-end brokerage statements ownership + 7 years
Mutual fund annual statements ownership + 7 years
Real estate purchase documents ownership + 7 years
Home improvement receipts and cancelled checks
ownership + 7 years
Home repair receipts and cancelled checks warranty
Retirement plan annual reports permanent
IRA annual reports permanent
IRA nondeductible contributions-Form 860 permanent
Insurance policies life of policy + 3 years. Check
with your agent. Liability for prior years can vary.
Divorce documents permanent
Loan documents term of loan + 7 years
Estate planning documents permanent

All records must be retained for at least the minimum period as stated in an applicable state statute or
federal law or regulation. State laws may vary dramatically. Accordingly, your individual situation should
be considered when defining how long to keep your records. This handout is intended as a tool. It should
not be relied on or used as a substitute for professional or legal research, advice or analysis. In no event
should this handout be construed as the rendering of advice or services by Bauman Associates, Ltd.