Retention Guide for Businesses Good recordkeeping is essential not only for tax reporting purposes but also for the success of your company.  The guidelines below give retention periods for the most common business records.  Contact us if you would like more information or assistance with your records retention program. Accounting Records Retention Period Accounts Payable 7 years Accounts Receivable 7 years Audit Reports Permanent Chart of Accounts Permanent Depreciation Schedules Permanent Expense Records 7 years Financial Statements (annual) Permanent Fixed Asset Purchases Permanent General Ledger 10 years Inventory Records 7 years (1) Loan Payment Schedules 7 years Purchase Orders (1 copy) 7 years Sales Records 7 years Tax Returns Permanent Bank Records   Bank Reconciliations 7 years Bank Statements 7 years Cancelled Checks 7 years (2) Electronic Payment Records 7 years Corporate Records   Board Minutes Permanent Bylaws Permanent Business Licenses 10 years Contracts - major Permanent Contracts - minor Life + 7 years Insurance Policies Life + 7 years (3) Leases/Mortgages Life + 7 years Patents/Trademarks Permanent Shareholder Records Permanent Stock Registers Permanent Stock Transactions Permanent Employee Records   Benefit Plans Permanent Employee Files (ex-employees) 7 years (4) Employment Applications 3 years Employment Taxes 7 years Payroll Records 7 years Pension/Profit Sharing Plans Permanent Real Property Records   Construction Records Permanent Leasehold Improvements Permanent Lease Payment Records Life + 4 years Real Estate Purchases Permanent (1) Permanent for LIFO System.   (2) Permanent for Asset Acquisition.   (3) Check with your agent.Liability for prior years can vary.   (4) Or statute of limitations for employee lawsuits.

Retention Guide for Individuals Good record keeping can cut your taxes and make your financial life easier. How long to keep records is a combination of judgement 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 for paper records.  Contact us if you would like more information or assistance with records retention. Generally, follow these recommended retention periods for various documents: Record Retention Period Tax Returns 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 Receipts, Diaries, Logs pertaining to Tax Return 7 years Investment purchase and sales slips Ownership period + 7 years Dividend and Reinvestment Records Ownership period + 7 years Year-end Brokerage Statements Ownership period + 7 years Mutual Fund Annual Statements Ownership period + 7 years Investment Property Purchase Documents Ownership period + 7 years Home Purchase Documents Ownership period + 7 years Home Improvement Receipts and Cancelled Checks Ownership period + 7 years Home Repair Receipts and Cancelled Checks Warranty period for item Retirement Plan Annual Reports Permanent IRA Annual Reports Permanent IRA Nondeductible Contributions Form 8606 Permanent Insurance Policies Life of Policy + 3 years (1) Divorce Documents Permanent Loans Term of Loan + 7 years Estate Planning Documents Permanent (1) Check with your agent.  Liability for prior years can vary.