How Long Keep Tax Records?

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At least three years should pass before the record is destroyed after filing because it is the general period of IRS audit. But according to circumstances, you might have to retain them. In case of unreported income or some losses, maintain records within a period of up to seven years. Documents on property or investments or business assets are supposed to be kept as long as you are in possession of the same, and an extra few years after the sale. It would be prudent to make digital backups and keep safe in order to avoid loss. Good recordkeeping would help to ensure that you would check deductions, audit, and help to manage long-term financial records.

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