How Long Do I Keep Tax Records?

Business Record Guidelines   

Employee earnings

Maintain for a minimum of four years, to meet various state and federal requirements.

Employee
time cards

Keep for at least three years if your business is subject to the Fair Labor Standards Act (engaged in interstate commerce); although it’s a good practice for all businesses to keep the files for several years in case questions arise.

Personnel records

Retain three years after an employee has been terminated.

Employment tax records

Keep four years from the date the tax was due, or the date it was paid — whichever is longer.

Employee business expenses

For travel and transportation expenses supported by mileage logs and other receipts, keep supporting documents for the three-year statute of limitations period.

Sales tax returns

State regulations vary. For example, New York generally requires sales tax records to be retained for three years, while California requires four years, and Arkansas, six. Check with your tax adviser for the required record retention period for returns and supporting documents.

Business property

Records used to substantiate the cost and deductions (such as depreciation, amortization and depletion) associated with business property must be maintained to determine the basis and gain (or loss) on the sale. Keep these for as long as you own the asset, plus seven years, according to IRS guidelines.

Posted in Coaching, Solopreneur Skillset

Leave a Reply