Records Retention
Clients frequently ask how long they should retain important documents. The schedule below is provided for informational purposes only. Please contact legal counsel for guidelines applicable to your situation.
Taxpayers retaining records using paperless alternatives should refer to the following revenue procedures to ensure that records are acceptable to the IRS. Rev. Proc. 81-46 addresses retaining books and records on microfilm or microfiche (micrography technology). Rev. Proc. 97-22 updates the procedures in Rev. Proc. 81-46 for the advances in retaining records via electronic storage media such as magnetic tape, optical disk, CD-ROM, etc. Rev. Proc. 98-25 provides guidance on retention of automated data process (ADP) files or machine sensible records.
Follow the link below to download the “Guide to Small Business Recordkeeping.”
| Type of Record | Retention Period |
| Tax and legal correspondence | 7 years after liquidation of entity |
| Audit reports | 7 years after liquidation of entity |
| General ledger and journals | 7 years after liquidation of entity |
| Financial statements | 7 years after liquidation of entity |
| Contracts and leases | 7 years after liquidation of entity |
| Real estate records | 7 years after liquidation of entity |
| Corporate stock records and minutes | 7 years after liquidation of entity |
| Bank statements and deposit slips | 6 years |
| Sales Records and Journals | 6 years |
| Other records relating to revenue | 6 years |
| Employee expense reports and records relating to travel and entertainment expenses | 7 years after liquidation of entity |
| Canceled checks | 3 years |
| Paid vendor invoices | 3 years |
| Employee payroll expense records | 4 years |
| Inventory records | 3 years (longer if you use LIFO) |
| Depreciation schedules | At least tax life of asset plus 3 years |
| Other capital asset records | At least tax life of asset plus 3 years |
| Other records relating to expenses | 3 years |
| Partnership agreement and amendments | Permanently |
| Operating agreement and amendments (LLC) | Permanently |