What the Period of Limitations Means
The IRS’s recordkeeping guidance ties how long you keep records to the period of limitations. This is the window of time when your return can still change. During it, you can amend your return to claim a credit or refund, and the IRS can assess additional tax.
Your records back up what you reported on your return. That’s why you should hold on to them until this window closes.
When the Clock Starts
The years count from the date you file your return. If you file before the due date, your return is treated as filed on the due date. If you file late or on extension, the clock starts on the actual filing date.
For example, say you file your 2025 return in February 2026. Your clock starts on the April 2026 due date.
How Long to Keep Tax Records by Situation
Start with the 3-year general rule. Then check the table for situations that require you to keep records longer.
| Your situation | How long to keep records |
|---|---|
| You file a return and nothing below applies | 3 years |
| You file a claim for a credit or refund after you file | 3 years from filing or 2 years from paying the tax, whichever is later |
| You don’t report income you should have, and it’s more than 25% of the gross income on your return | 6 years |
| You claim a loss from worthless securities or a bad debt deduction | 7 years |
| You don’t file a return | Indefinitely |
| You file a fraudulent return | Indefinitely |
| You have employees and keep employment tax records | At least 4 years after the tax is due or paid, whichever is later |
Why Property Records Need a Longer Timeline
Property records follow their own timeline. Keep them until the period of limitations expires for the year you sell or otherwise dispose of the property.
You need these records to figure out your basis. In simple terms, basis is what you paid for the property plus the cost of improvements. It’s used to calculate depreciation and any gain or loss when you sell.
Nontaxable Exchanges
A nontaxable exchange is a trade of property where you don’t owe tax at the time of the swap. In this case, keep records on both the old and the new property. Hold on to them until the period of limitations expires for the year you dispose of the new property.
Why You Should Keep Copies of Your Filed Returns
Beyond the supporting records, the IRS recommends keeping copies of your filed tax returns. They help you prepare future returns. They also help with the math if you ever file an amended return, which is a corrected version of a return you already filed.
If you lost an old return, you can request a tax transcript instead.
Check Other Requirements Before You Shred
Before you toss old records, check whether you need them for anything else. Your insurance company or creditors may require you to keep them longer than the IRS does.
