Record Retention Guide
How long should you actually keep your tax returns, bank statements, and business records? Here is a practical, plain-language guide from our CPAs in Garden City, NY, so you keep what matters and shred the rest with confidence.
Reviewed by James R. Hurley, CPA · June 2026
How Long to Keep Your Records
One of the most common questions we hear from clients across Long Island and the tri-state area is simple: what can I throw away, and what do I need to keep? The honest answer is that some documents can be safely discarded after a few years, while others should be kept for life. The tables below give you a clear, practical starting point for both personal and business records.
The retention periods here are built around the IRS statute of limitations (explained below) plus the realities of lending, insurance, and estate matters. When a document supports something you reported on a tax return, the clock generally starts on the date you filed that return, not the date on the document itself.
Personal Records
| Document | How Long to Keep |
|---|---|
| Filed tax returns | Keep permanently |
| W-2s, 1099s, and other income records | 7 years |
| Supporting documents (receipts, deduction backup) | 7 years |
| Bank and credit card statements | 7 years |
| Investment purchase and sale confirmations | Until 7 years after the asset is sold |
| Retirement account statements (IRA, 401k) | Keep permanently |
| Home purchase, sale, and improvement records | Until 7 years after the home is sold |
| Loan and mortgage documents | 7 years after the loan is paid off |
| Medical bills and HSA/FSA records | 7 years |
| Insurance policies | Life of the policy, then 7 years |
| Birth, marriage, death certificates, wills, deeds | Keep permanently |
Business Records
| Document | How Long to Keep |
|---|---|
| Filed business tax returns | Keep permanently |
| General ledgers and financial statements | Keep permanently |
| Corporate records, bylaws, and meeting minutes | Keep permanently |
| Payroll tax returns and records | 4 to 7 years |
| Employee records (after termination) | 7 years |
| Receipts, invoices, and expense backup | 7 years |
| Bank statements and reconciliations | 7 years |
| Sales tax returns and records | 7 years |
| Accounts payable and receivable ledgers | 7 years |
| Fixed asset and depreciation records | Life of the asset, then 7 years |
| Contracts and leases | 7 years after expiration |
General Guidance
When in doubt, keep it longer. Storage is cheap, and reconstructing a lost record under audit pressure is expensive and stressful. A few principles make the decision easier:
Anything that establishes basis stays until you dispose of the asset. Records for a home, an investment, or a piece of business equipment prove what you paid. Keep them for as long as you own the asset, then for the standard seven-year window after you sell it.
Permanent does not have to mean paper. The IRS accepts clear digital copies, so scanning and securely backing up your records is a smart way to keep "permanent" documents without the filing cabinets. Just keep originals of anything with a signature or official seal.
Shred, do not just toss. Tax documents contain Social Security numbers, account numbers, and other information identity thieves want. Always shred records before disposing of them.
The IRS statute of limitations. In most cases the IRS has three years from the date you file a return to audit it and assess additional tax. That window stretches to six years if you understate your gross income by more than 25 percent, and there is no time limit at all for a fraudulent return or a return that was never filed. Because of the six-year rule, keeping supporting documents for at least seven years is the safe standard for almost everyone.
These are general guidelines, not a rule for every situation. Retention requirements can vary based on your circumstances, your industry, and New York State law. Before you discard anything important, contact JRH & Associates to confirm what applies to you.
The clients who sleep best at audit time are the ones who kept the boring paperwork. Throw out a receipt and you lose a deduction. Keep it seven years and you are simply covered. When you are unsure, keep it, and call us.
James R. Hurley, CPA Founder & President, JRH & Associates Frequently Asked Questions
How long should I keep my tax returns?
We recommend keeping copies of your filed federal and New York State tax returns permanently. While the IRS statute of limitations runs out after three years in most cases, the returns themselves take up little space and are frequently needed for mortgage applications, loan approvals, Social Security verification, and to prove what you reported in a prior year. It is the supporting documents (W-2s, 1099s, receipts) that you can safely discard after about seven years.
What is the IRS statute of limitations for an audit?
The IRS generally has three years from the date you file a return to assess additional tax. That window extends to six years if you omit more than 25 percent of your gross income, and there is no time limit at all in cases of fraud or a return that was never filed. Because of the six-year rule, keeping supporting documents for at least seven years is the safe standard.
Can I keep my records digitally instead of on paper?
Yes. The IRS accepts legible digital copies and scanned images of your supporting documents, and electronic storage is perfectly acceptable as long as the records are accurate, complete, and can be produced on request. We still recommend keeping a secure, backed-up copy in more than one location and retaining anything with an original signature or seal in its physical form.
How long should a business keep payroll records?
Keep payroll tax records for at least four years after the tax is due or paid, whichever is later, to satisfy IRS requirements. New York State and certain federal employment laws can push the practical retention period to six or seven years, so most businesses we work with keep payroll documentation for seven years to be safe.
Need a hand sorting through your files, or want a retention policy built for your business? Explore our accounting and tax services, browse more tools in our Tax Center, or get in touch with our Garden City office.
Not sure what to keep?
Our CPAs will help you build a record-keeping plan that protects you at audit time and clears out the clutter. Your first consultation is always free.