How Long Should You Retain Your IRS Tax Returns?

Old tax returns might come in handy years later.

Keep Forever

In some circumstances, tax records should be kept indefinitely. If you filed a return that was not for approved circumstances, the IRS recommends keeping your records to show the IRS compliance in the future. You should keep your records in case the circumstances of that year's tax information later come into question.

Two to Seven Years

The IRS recommends keeping individual records anywhere from two to seven years. These circumstances include two years if you file for a claim or refund on a tax return, four years for employment records and seven years if you claim a loss from worthless securities or bad debt.

Bottom Line

The IRS recommends keeping your tax returns indefinitely for your own personal use, and creditors and insurance companies may require specific tax forms for longer than the IRS recommends. Using a filing system to keep your information organized, records kept indefinitely can help ensure a minimum of unpleasantness in the future.

References

• Internal Revenue Service: How Long Should I Keep Records?