Record Retention Guide

Storing tax records: How long is long enough? A practical reference for businesses and individuals.

At a glance

How long should you keep your records?

1yr

Bank statements, paycheck stubs, correspondence

Short-term documents that can be purged after reconciliation.

3yr

Credit card statements, utility records, general correspondence

Standard retention for most financial and insurance records.

6yr

Tax return supporting documents, payroll, ledgers

The federal statute of limitations for tax record review.

Tax returns, deeds, legal records, pension records

Keep forever. These are foundational documents you may need at any time.

Identity theft protection

After records are no longer needed, shred them. Never throw tax records, financial statements, or documents with personal information in the trash.

Business

Business documents by retention period.

1 Year
  • Correspondence with customers and vendors
  • Duplicate deposit slips
  • Purchase orders (other than Purchasing Dept copy)
  • Receiving sheets
  • Requisitions
  • Stenographer's notebooks
  • Stockroom withdrawal forms
3 Years
  • Employee personnel records (after termination)
  • Employment applications
  • Expired insurance policies
  • General correspondence
  • Internal audit reports
  • Internal reports
  • Petty cash vouchers
  • Physical inventory tags
  • Savings bond registration records
  • Time cards for hourly employees
6 Years *7 years for bad debt or worthless securities
  • Accident reports and claims
  • Accounts payable ledgers and schedules
  • Accounts receivable ledgers and schedules
  • Bank statements and reconciliations
  • Cancelled checks
  • Cancelled stock and bond certificates
  • Employment tax records
  • Expense analysis and distribution schedules
  • Expired contracts and leases
  • Expired option records
  • Inventories of products, materials, supplies
  • Invoices to customers
  • Notes receivable ledgers and schedules
  • Payroll records and summaries
  • Plant cost ledgers
  • Purchasing department copies of purchase orders
  • Sales records
  • Subsidiary ledgers
  • Time books
  • Travel and entertainment records
  • Vouchers for payments to vendors and employees
  • Voucher register and schedules
Keep Forever
  • Audit reports from CPAs / accountants
  • Cancelled checks for important payments (especially tax payments)
  • Cash books, charts of accounts
  • Contracts and leases currently in effect
  • Corporate documents (incorporation, charter, by-laws)
  • Documents substantiating fixed asset additions
  • Deeds
  • Depreciation schedules
  • Financial statements (year-end)
  • General and private ledgers, year-end trial balances
  • Insurance records, accident reports, claims, policies
  • Investment trade confirmations
  • IRS Revenue Agents' reports
  • Journals
  • Legal records and important correspondence
  • Minute books of directors and stockholders
  • Mortgages, bills of sale
  • Property appraisals by outside appraisers
  • Property records
  • Retirement and pension records
  • Tax returns and worksheets
  • Trademark and patent registrations
Personal

Personal documents by retention period.

1 Year
  • Bank statements
  • Paycheck stubs (reconcile with W-2)
  • Canceled checks
  • Monthly and quarterly mutual fund and retirement contribution statements (reconcile with year-end statement)
3 Years
  • Credit card statements
  • Medical bills (in case of insurance disputes)
  • Utility records
  • Expired insurance policies
6 Years *7 years for bad debt or worthless securities
  • 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 Forever
  • CPA audit reports
  • Legal records
  • Important correspondence
  • Income tax returns
  • Income tax payment checks
  • Investment trade confirmations
  • Retirement and pension records
Special circumstances

Document-specific rules.

Car Records

Keep until the car is sold.

Credit Card Receipts

Keep with your credit card 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 is sold.

Sales Receipts

Keep for the 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 & Capital Asset Records

Keep for 3 years after the tax life of the asset.

Best practice

Create a backup set of records.

Scan and digitize

Scan paper documents into digital format. Many financial institutions already provide statements electronically.

Store on external media

Download files to an external hard drive, USB drive, or burn onto a CD/DVD. Don't forget to label them clearly.

Use online backup

Online backup stores files in another region of the country, protecting them from local disasters like hurricanes or fires.

Have a question about record retention.

Every situation is different. If you're unsure how long to keep a specific document, Jack is happy to help.