Records Retention Schedule

There are really no prescribed rules for the amount of time to keep tax documents, so we have put together this reference list for many common records. They are listed in alphabetical order under how many years kept. Keep in mind that the IRS has three years after a return is filed to assess additional taxes. That increases to six years after the filing date if gross income on the return was understated by 25% or more, and the time is indefinite if a fraudulent return or no return was filed. Please contact us for further assistance in records retention.

Permanent

Audit reports of accountants
Capital stock and bond records: ledgers, transfer registers, stubs showing issues, record of interest coupons, etc.
Cash books
Charts of accounts
Checks (cancelled) for important payments, such as taxes, purchase of property, special contracts, etc.*
Contracts and leases still in effect
Correspondence (legal and important matters only)
Deeds, mortgages and bills of sale
Depreciation schedules
Financial statements (end of the year; other months optional)
General and private ledgers (and end of the year trial balances)
Insurance records, current accident reports claims, policies, etc.
Journals
Minute books of directors and stockholders, including by-laws and charter
Property appraisals by outside appraisers
Property records, including cost, depreciation, reserves and end of the year trial balances, depreciation schedules, blueprints and plans
Tax returns and worksheets, revenue agents' reports and other documents relating to income tax lability
Trade mark registrations

7 Year

Accounts receivable ledgers and schedules
Cash books
Checks (cancelled) *See Exceptions, next item
Contracts and leases (expired)
Employee retirement income security act (ERISA)
Expense analyses and expense distribution schedules
Occupational safety and health act (OSHA)
Sales records
Scrap and salvage records (inventories, sales etc.)
Stock and bond certificates (cancelled)
Subsidiary ledgers
Time books
Voucher register and schedules
Voucher for payments to vendors, employees, ETS., including allowances for reimbursement of employees, officers, etc., for travel/ent. expenses

4 Year

Any fringe benefits provided to the employee
Copies of all federal tax returns filed, copy D of employee form W-2, and forms 940, 041, 043 and 1099-R
Date of each wage payment made to the employee (including tips)
Employee's name, address occupation and social security number
Tip reporting records
Wages subject to withholding for federal income tax, social security and medicare taxes, employee's form W-4, employee's hire and termination dates

3 Year

Correspondence (general)
Date of payment and the period covered
Employee's name, home address, date of birth (if under 19), gender and occupation
Employee personnel records (after termination)
Immigration reform and control act
Inclusions and exclusions from wages (such as bonus, withheld taxes, etc.)
Insurance policies (expired)
Internal audit reports**
Internal reports (miscellaneous)
Petty cash vouchers
Physical inventory tags
Regular rate of pay and its calculation
Hours worked each weekday and workweek
Savings bond registration records of employees
Straight-time earnings, and overtime earnings

1 Year

Bank reconciliations
Correspondence (Outline) with customers and vendors
Duplicate deposit slips
Purchase orders (except purchasing department copy)
Receiving sheets
Requisitions
Stenographers' notebooks
Stockroom withdraw forms

* Cancelled checks should be filed with the papers pertaining to the underlying transaction.

**In some situations, longer periods may be desirable.