|
BUSINESS |
|
| Accounting Records | Retention Period |
| Accounts Payable | 7 years |
| Accounts Receivable | 7 years |
| Audit Reports | Permanent |
| Chart of Accounts | Permanent |
| Depreciation Schedules | Permanent |
| Expense Records | 7 years |
| Financial Statements (Annual) | Permanent |
| Fixed Asset Purchases | Permanent |
| General Ledger | Permanent |
| Inventory Records | 7 years1 |
| Loan Payment Schedules | 7 years |
| Purchase Orders (1 copy) | 7 years |
| Sales Records | 7 years |
| Tax Returns | Permanent |
| Bank Records | Retention Period |
| Bank Reconciliations | 2 years |
| Bank Statements | 7 years |
| Cancelled Checks | 7 years2 |
| Electronic Payment Records | 7 years |
| Corporate Records | Retention Period |
| Board Minutes | Permanent |
| Bylaws | Permanent |
| Business Licenses | Permanent |
| Contracts - Major | Permanent |
| Contracts - Minot | Life + 4 years |
| Insurance Policies | Life + 3 years3 |
| Leases/Mortgages | Permanent |
| Patents / Trademarks | Permanent |
| Shareholder Records | Permanent |
| Stock Registers | Permanent |
| Stock Transactions | Permanent |
| Employee Records | Retention Period |
| Benefit Plans | Permanent |
| Employee Files (ex-employees) | 7 years4 |
| Employment Applications | 3 years |
| Employment Taxes | 7 years |
| Payroll Records | 7 years |
| Pension / Profit Sharing Plans | Permanent |
| Real Property Records | Retention Period |
| Construction Records | Permanent |
| Leasehold Improvements | Permanent |
| Lease Payment Records | Life + 4 years |
| Real Estate Purchases | Permanent |
| 1Permanent for LIFO system. | |
| 2Permanent for real estate purchases. | |
| 3Check with your agent. Liability for prior years can vary. | |
| 4Or statute of limitations for employee lawsuits. | |
| Tax returns can
generally be audited for up to three years after filing and up to six
years if the IRS suspects underreported income. It is wise to keep
tax records at least seven years after a return is filed.
Requirements for records kept electronically are the same as for paper
records. Generally, follow these recommended periods for various documents: |
|
| Individual Records | Retention Period |
| Tax Returns (uncomplicated) | 7 years |
| Tax Returns (all others) | Permanent |
| W-2's | 7 years |
| 1099's | 7 years |
| Cancelled Checks Supporting Tax Deductions | 7 years |
| Bank Deposit Slips | 7 years |
| Bank Statements | 7 years |
| Charitable Contribution Documentation | 7 years |
| Credit Card Statements | 7 years |
| Receipts, Diaries, Logs Pertaining to Tax Return | 7 years |
| Investment Purchase and Sales Slip | Ownership Period + 7 years |
| Dividend Reinvestment Records | Ownership Period + 7 years |
| Mutual Fund Annual Statements | Ownership Period + 7 years |
| Investment Property Purchase Documents | Ownership Period + 7 years |
| Home Purchase Documents | Ownership Period + 7 years |
| Home Improvement Receipts and Cancelled Checks | Ownership Period + 7 years |
| Home Repair Receipts and Cancelled Checks | Warranty Period for Item |
| Retirement Plan Annual Reports | Permanent |
| IRA Annual Reports | Permanent |
| IRA Nondeductible Contributions Form 8606 | Permanent |
| Insurance Policies | Life of Policy + 3 years1 |
| Divorce Documents | Permanent |
| Loans | Term of Loan + 7 years |
| Estate Planning Documents | Permanent |