How Long Should a Business Keep Old Records?

Ideally, you should keep business records as long as possible.

It Depends on What Type of Record

How long you need or should keep business records depends on the type of documents you hold. You must, for example, keep employment tax records for at least four years, according to the Internal Revenue Service. In case the IRS finds you filed an erroneous tax return, you should keep records for as long as possible.

Keep Them Indefinitely

You should keep business records indefinitely because you never when you might need them. You never know, for example, when an employee might need a copy of an old payroll stub. In addition, a company bears the burden of proof during most tax disputes.

Bottom Line

Ideally, you would keep all old business records, but this may not prove practical. At the very least, keep business records for as long as the IRS requires. Consult IRS Publication 583 to find out how long you must keep certain types of records.

References

• Internal Revenue Service: How Long Should I Keep Records?
• QBalance: Record Retention Table
• Internal Revenue Service: Publication 583