Keep tax returns and records for at least three years from the date you filed

The Internal Revenue Service (IRS) can examine your tax return for three years after you file it. This is the standard period during which the IRS may request to see your records, so you need to hold onto your return and the documents that support it — receipts, W-2 forms, 1099 forms, bank statements, and anything else you used to calculate your numbers — for at least that long.

The three-year rule is not a hard important date after which you must throw everything away. It is the minimum. Certain situations require you to keep records longer, and there is no penalty for keeping them longer than required. Many people keep tax documents for seven years or even indefinitely, which is a reasonable approach if you have the storage space.

Key Takeaways

  • The IRS can examine your return for three years after you file, so keep your return and all supporting documents for at least three years.
  • If you underreported your income by 25 percent or more, the IRS can look back six years, so keep records for six years in that case.
  • If you did not file a return at all, there is no time limit — the IRS can examine you at any point, so keep records indefinitely if you have unfiled years.
  • Keep records related to property you own (home, investments, rental property) for as long as you own it plus three years after you sell it.
  • The three-year period starts from the date you filed your return, not from the tax year itself — a return filed in April 2024 for tax year 2023 starts the clock in April 2024.

When the IRS can look back six years instead of three

If you underreported your income by 25 percent or more on your return, the IRS has six years to examine you instead of three. This is called the substantial understatement rule. The IRS does not need to prove you did this intentionally — even an honest mistake that results in underreporting income by more than a quarter of what you actually earned triggers the six-year window.

You should keep your records for six years if you think there is any chance your reported income was significantly lower than your actual income. This includes situations where you received cash income, had multiple jobs, or received income you did not report.

When there is no time limit at all

If you did not file a tax return for a particular year, the IRS can examine you for that year at any time. There is no statute of limitations. This means if you have an unfiled tax year from 2015 or 2010 or any year in the past, the IRS could theoretically come after you decades later.

If you have unfiled years, keep all records related to those years indefinitely. The same applies if you filed a fraudulent return — the IRS has no time limit to pursue fraud cases. If you suspect you have unfiled years or filed incorrectly, speak with a tax professional about your options.

Records for property sales and investments

Keep records related to any property you own — a home, rental property, stocks, or other investments — for as long as you own it, plus three years after you sell it. These records include the purchase price, the date you bought it, any improvements you made, and the sale price and date when you eventually sell.

The reason is that when you sell property, you owe tax on the gain (the difference between what you paid and what you sold it for). The IRS may ask to see your purchase records to verify the original cost. After you sell, keep the sale documents and the original purchase records for three years from the sale date.

What documents count as tax records

Tax records include your actual tax return (the form you filed), but also every piece of paper you used to prepare it. This means W-2 forms from employers, 1099 forms for other income, receipts for deductions, bank statements, credit card statements, mortgage statements, charitable donation receipts, medical expense records, business expense logs, and mileage records if you claimed mileage deductions.

If you used tax software or worked with a tax preparer, keep a copy of the return they prepared for you and any worksheets or notes they gave you. If you received documents from the IRS — such as a notice of deficiency or a letter about an examination — keep those as well.

You do not need to keep the original paper documents if you have scanned them or photographed them clearly. The IRS accepts digital copies as long as they are legible and complete.

How to organize and store your records

Create a folder for each tax year and put the return itself, plus all supporting documents, in that folder. Label it with the tax year (not the year you filed). Many people use a filing cabinet, a plastic storage box, or a digital folder on their computer or cloud storage.

If you use a tax software like TurboTax or H&R Block, you can usually read and save a PDF of your completed return from your account. Keep that PDF along with your other documents. If a tax preparer prepared your return, ask them for a copy of the final return and keep it with your records.

Digital storage is increasingly common and acceptable. You can photograph receipts with your phone, scan documents with a scanner or phone app, and store everything in a folder on your computer or in cloud storage like Google Drive or Dropbox. Just make sure you have a backup — if your computer crashes or your phone is lost, you lose everything.

What happens if you cannot find a document

If the IRS examines your return and you cannot locate a receipt or document you claimed, you may be able to reconstruct it. For example, if you claimed charitable donations but lost the receipts, you can sometimes use bank statements or credit card statements showing the donation, or a letter from the charity confirming the donation.

If you cannot reconstruct a document and the IRS disallows the deduction, you will owe additional tax plus interest on that amount. This is another reason to keep records — it protects you if questions come up later.

Frequently Asked Questions

Do I need to keep the original paper receipts or can I just keep digital copies?

Digital copies are acceptable to the IRS as long as they are clear and complete. You can photograph receipts with your phone or scan them. You do not need to keep the original paper versions, though some people do for their own records.

What if I filed my return late — does the three-year clock start from when I filed or from the original tax important date?

The three-year period starts from the date you actually filed your return, not from the original April important date. If you filed in September for tax year 2023, the three-year window runs from September, not from April.

Can I throw away my records after three years?

You can, but you do not have to. Many people keep tax records for seven years or longer. There is no penalty for keeping them longer than required, and it can be helpful if questions come up later or if you need to reference old information.

Do I need to keep records for state taxes as long as I keep them for federal taxes?

State tax rules vary. Some states follow the federal three-year rule, while others have different time limits. Check your state's tax agency website or speak with a tax professional about your state's specific requirements.

What if the IRS contacts me about a return from five years ago?

If the IRS contacts you about a return outside the normal three-year window, it usually means they believe you underreported income by 25 percent or more, or they suspect fraud. Gather all records related to that year and consider speaking with a tax professional or attorney before responding.