MIDWAY TAX SERVICE OBTP #01128
Record Retention Guidance
Suggested Holding Periods for Tax Records:
1. It is a good policy to save copies of your 1040 and supporting schedules indefinitely.
2. The IRS requires record retention as long as they are important for Federal Tax law. Generally this means:
* 7 years from the date the return is filed...or
* 6 years from the tax payment date...or
* 10 years, if income is under-reported by more than 25%
(whichever is later)
3. Keep ALL--bank statements, checks, receipts and other financial records for at least seven years, especially those documents that will support your tax return figures.
4. HOLD INDEFINITELY
* All papers and receipts that deal with any purchase, sale and major improvement of your current and all previous principal residences.
* All IRA records, investment purchases and sales, and 1040 returns filed for each year.
5. Business Records
* All receipts, bank stmts, cancelled checks (or photoe copies) should be maintained until 7 years after the business ceases to operate or is sold.