How Long Should One Keep Receipts for IRS Purposes?

At a Mininum

The IRS has three years to audit individuals for what they believe to be "good faith" errors in filing. Therefore, at a minimum, all receipts should be saved for at least three years.

To Be Safe

Although the IRS only has three years to audit "good faith" errors in filing, they have up to six years to audit individuals if they suspect the taxpayer under-reported their income by more than 25 percent. Therefore, you could need your receipts for up to six years.

Bottom Line

Ultimately, it would be wise to keep all receipts for seven years to ensure you have all the needed records in any audit scenario.

References

• Bankrate: How Long to Keep Financial Records
• Small Business Notes: IRS Publication 463, How Long To Keep Records and Receipts