Keep tax records for at least three years after you file

The Internal Revenue Service (IRS) can audit your tax return for three years after you file it. That means you need to keep the documents that support what you reported — receipts, W-2s, 1099s, bank statements, cancelled checks, invoices — for at least that long. If the IRS contacts you about a return from 2021, you will need to show them the records from 2021.

Three years is the baseline, but the actual time you should keep records depends on what happened in that tax year and whether you reported all your income correctly. The longer retention periods below apply to specific situations.

Key Takeaways

  • Keep all tax records for three years after filing, because the IRS can audit returns within that window.
  • Keep records for six years if you reported less income than you actually received.
  • Keep records indefinitely if you never filed a return or filed a fraudulent one.
  • Keep records for seven years if you claimed a loss carryback or loss carryforward.
  • Property records — home purchase documents, improvement receipts, depreciation schedules — should be kept for three years after you sell the property.

Six years if you underreported income

If you left income off your return — whether by mistake or not — the IRS has six years to audit you instead of three. This applies when the income you failed to report is more than 25 percent of the gross income you did report on the return.

Example: You reported $40,000 in income but actually received $60,000. The unreported $20,000 is 50 percent of what you reported, so the six-year rule applies. Keep those records for six years from the filing date.

The IRS does not announce which returns it will audit. Keep the six-year records even if you think the underreporting was minor or accidental. The burden of proof is on you if you are contacted.

Seven years for loss carrybacks and carryforwards

If you claimed a net operating loss (NOL) or a capital loss carryforward on your return, keep those records for seven years. A loss carryforward means you are using a loss from one year to reduce taxable income in a later year. The IRS needs to verify the original loss and how you applied it across multiple years.

This applies even if you only used part of the loss in the year you filed. Keep the original loss documentation and all records showing how you carried the loss forward to each subsequent year.

Indefinitely for unfiled returns or fraud

If you never filed a tax return for a year when you owed taxes, there is no statute of limitations. The IRS can go back as far as it wants. Keep records for any year you did not file.

The same applies if you filed a fraudulent return. There is no time limit for the IRS to pursue a case involving fraud or tax evasion. If you suspect you filed incorrectly, consult a tax professional or attorney before the IRS contacts you.

Property and investment records: Keep longer than three years

Records related to real estate, stocks, or other investments should be kept longer because they affect multiple tax years. If you bought a house in 2015 and sold it in 2024, keep the purchase documents, all improvement receipts, and depreciation schedules for at least three years after the 2024 sale. The IRS may want to verify your cost basis — what you paid for the property — to confirm the gain or loss you reported.

For rental property, keep records for three years after you sell or stop renting it out. For stocks and mutual funds, keep purchase confirmations and sale confirmations for three years after you sell, because the IRS cross-checks these against brokerage statements.

What documents to actually keep

Keep the original or a clear copy of anything that proves what you reported on your return. This includes:

  • W-2s and 1099s from employers and payers
  • Receipts for deductions (medical, charitable, business, mortgage interest statements)
  • Bank statements and cancelled checks
  • Invoices and mileage logs if you are self-employed
  • Proof of estimated tax payments
  • Brokerage statements showing purchases and sales
  • Home purchase documents and receipts for major improvements
  • Rental income and expense records
  • The actual tax return you filed (keep a copy)

You do not need to keep the tax software files or printed versions of forms you did not use. You do need to keep anything that a tax examiner would ask to see if they questioned a line on your return.

Digital storage and document retention

You can store records digitally — scanned copies, PDFs, photos of receipts — as long as the image is clear and complete. Many people photograph receipts with their phone and store them in a folder or cloud service. This is acceptable to the IRS as long as you can produce the document if asked.

If you use tax software or a bookkeeping app, download and save your records outside that platform. Tax software companies sometimes delete old records after a certain period, and you will not have access if you need to prove something years later. Save a copy of your actual filed return as a PDF.

Do not rely solely on your bank or brokerage to keep records for you. Banks typically keep statements for five to seven years online, but after that you may have to request archived copies, which can take time and cost money. Keep your own copies.

Frequently Asked Questions

Can I throw away records after three years?

Only if you reported all your income correctly and have no other reason to keep them longer. If you claimed a loss carryforward, kept rental property, or have any doubt about whether you reported everything, keep them longer. When in doubt, keep them for six years.

What if I lost my receipts but filed my return?

If the IRS audits you and you cannot produce receipts, you may have to pay back the deduction or credit you claimed. The burden is on you to prove what you reported. This is why keeping records matters. If you lost them after three years have passed and the IRS has not contacted you, the risk is lower, but you still cannot prove the deduction if asked.

Do I need to keep the paper return I mailed, or just the filed version?

Keep a copy of what you actually filed — whether you printed it, received a confirmation email, or got a filing receipt. You do not need to keep the mailed envelope or cover letter, but keep the return itself and all schedules and forms you submitted.

How long should I keep records for a business I no longer own?

Keep business records for three years after you close the business or sell it. If you claimed depreciation on business property, keep those records for three years after you sell the property. If the business had losses you carried forward to personal returns, keep records for seven years.

What about records for returns I filed but never received a refund?

Keep them for three years. The IRS can still audit a return even if you did not receive a refund. The retention period is based on when you filed, not on whether money changed hands.