Record retention may seem like the endless accumulation of documents, but it’s actually a key tool if you’re subject to an IRS audit, various legal actions, or when planning for the future. With so many important documents to keep track of, how do you know which ones to save, and how long to hold onto them?
Below are suggested retention guidelines for specific documents as they apply to individuals, businesses, and more.
Individuals
Retain permanently
- Tax return copies
- Life insurance policies
- Forms W-2 received
- House records
- Birth and death certificates
- Medical records
Retain for a minimum of seven years
- Medical receipts
- Forms 1099 received
- Loan records
- Certificates of deposit statements
Businesses
You should permanently file corporate records such as annual reports, public audit reports, bylaws, election records, and financial statements. You should also record and retain organizational charts, board of directors committees, and minute books forever.
Nearly all documents related to fixed assets and taxation should also be stored indefinitely. Items such as the 338 election and transfer pricing can be retained for seven years or less.
Most legal documents, such as business permits, employee or labor union contracts, and patents, must be retained permanently. Hold leases and notes receivable for 10 years.
The ability to access financial documents if needed requires a strong security and organization systems to store them. Make sure you have electronic and hard copy files, and the right security in place to protect them. Create a strategic filing system so you can find your documents with ease when it comes time to access them.
View more record retention guidelines below.
Record Retention Guidelines
| Item | Suggested retention period |
| Tax return copies | Permanent records |
| Medical receipts | 7 years |
| Forms 1099 received | 7 years |
| Forms W-2 received | Permanent records |
| 401(k) / Keogh statements | 7 years following disposition, termination or payoff |
| IRA statements (deductible & nondeductible) | 7 years / permanent records |
| Loan records / Forms 1098 | 7 years following disposition, termination or payoff |
| Annuity year-end statements | 7 years following disposition, termination or payoff |
| Life insurance policies | Permanent records |
| Other insurance policies | 7 years |
| Major purchase receipts | 7 years |
| Year-end brokerage statements / trade confirmations | 7 years following disposition, termination or payoff |
| Certificates of deposit statements | 7 years |
| Schedule K-1s from partnership or S corporation | 7 years following disposition, termination or payoff |
| House records (canceled checks for purchase of major improvements & maintenance) | Permanent records |
| Birth & death certificates | Permanent records |
| Medical records | Permanent records |
| Wills | Permanent records |
| Trust agreements | Permanent records |
| Detailed list of financial assets held | Permanent records |
| Alimony, custody, or prenuptial agreements | Permanent records |
| Military papers | Permanent records |
| Photos or videotape valuables | Permanent records |
| Item | Suggested retention period |
| Amendments | Permanent records |
| Annual reports | Permanent records |
| Articles of incorporation | Permanent records |
| Public audit reports | Permanent records |
| Internal audit | 6 years |
| Board of directors committee | Permanent records |
| Board of directors minute book | Permanent records |
| Bylaws | Permanent records |
| Capital stock certificates | Permanent records |
| Capital stock ledger | Permanent records |
| Capital stock transactions | Permanent records |
| Charter | Permanent records |
| Contracts - after termination | Permanent records |
| Contributions | 7 years |
| Accounting correspondence | 5 years |
| General correspondence | Permanent records |
| Dividend register & canceled dividend checks | Permanent records |
| Election records | Permanent records |
| Financial statements | Permanent records |
| Organizational charts | Permanent records |
| Partnership agreement | Permanent records |
| Stock transfer records | Permanent records |
| Stockholders minute book | Permanent records |
| Item | Suggested retention period |
| Depreciation schedule | Permanent records |
| Inventory records | Permanent records |
| Plans & blueprints | Permanent records |
| Plant cost ledger | Permanent records |
| Property appraisals | Permanent records |
| Records for property subject to depletion | Permanent records |
| Item | Suggested retention period |
| Accounts payable ledger | 7 years |
| Accounts receivable aging reports | 7 years |
| Accounts receivable ledger | 7 years |
| Accounts receivable invoices | 7 years |
| Accounts written-off | 7 years |
| Authorization - accounting | 5 years |
| Balance sheets | Permanent records |
| Bank reconciliations | 7 years |
| Bank statements | 7 years |
| Bank deposit slips | 3 years |
| Budgets | 3 years |
| Canceled checks | 10 years |
| Canceled dividend checks | Permanent records |
| Cash book | Permanent records |
| Cash disbursement & receipt record | Permanent records |
| Cash sales slips | 7 years |
| Charge slips | 7 years |
| Charts of accounts | Permanent records |
| Check register | Permanent records |
| Expense reports | 7 years |
| Financial statements | Permanent records |
| General ledger | Permanent records |
| Investment - sales / purchases | Permanent records |
| Journal entries | Permanent records |
| Petty cash records | 7 years |
| Profit / loss statements | Permanent records |
| Purchase order | 7 years |
| Subsidiary ledger | Permanent records |
| Trial balance | Permanent records |
| Vendor invoices | 7 years |
| Voucher check copies | 7 years |
| Item | Suggested retention period |
| Tax free reorganization | Permanent records |
| 338 election | 7 years |
| Canceled checks - tax payments | Permanent records |
| Tax correspondence | Permanent records |
| Depreciation schedules | Permanent records |
| Income tax returns | Permanent records |
| Inventory reports | Permanent records |
| FUTA / FICA / Income tax withholding | 4 years |
| Payroll tax returns | Permanent records |
| Revenue agent reports | Permanent records |
| Sales tax returns | Permanent records |
| NOL company | Maintain permanent records of all the facts necessary for the first taxable year and each succeeding year in which there’s a NOL or NOL carryover. This includes records necessary to determine the identity of 5% shareholders, the percentage of its stock owned by each 5% shareholder and whether IRC Section 382 is applicable. |
| AMT NOL company | Maintain permanent records of all the facts necessary for the first taxable year and each succeeding year in which there’s a NOL or NOL carryover. This includes records necessary to determine the identity of 5% shareholders, the percentage of its stock owned by each 5% shareholder and whether IRC Section 382 is applicable. |
| Transfer pricing | 4 years |
| Item | Suggested retention period |
| Contractors | 3 years from date of completion of contract |
| Payroll checks | 7 years |
| Salesperson commission reports | 6 years |
| Employee withholding exemption certificates | 10 years |
| Payroll register | 4 years |
| Payroll records - after termination | 10 years |
| Salary history | 8 years |
| Time reports | 7 years |
| Forms W-2 | Permanent records |
| Vacation / sick pay | 4 years |
| Large food or beverage establishment reporting tips | 3 years |
| Employee tip substantiation | 3 years - as long as the contents there-of may become material in the administration of any Internal Revenue Law |
| Item | Suggested retention period |
| Settled accident reports | 7 years |
| Attendance records | 7 years |
| Dental benefits | 5 years |
| Disability benefits - after expiration / settlement | 7 years |
| Employee medical history | 7 years |
| Employment application - not hired | 3 years |
| Garnishments | 5 years |
| Life insurance benefits | 5 years |
| Medical benefits | 7 years |
| Pension plan agreement | Permanent records |
| Performance record - after termination | 7 years |
| Personnel file - after termination | 7 years |
| Personnel files - current employees | Permanent records |
| Profit sharing agreement | Permanent records |
| Safety reports | 5 years |
| Vacation files | 4 years |
| Workers compensation benefits | 10 years |
| Sick pay | 4 years |
| Family & medical leave | 3 years |
| Item | Suggested retention period |
| Automobile insurance claims | 10 years |
| Disability insurance claims - after termination | 7 years |
| Expired insurance policies | 10 years |
| Fire inspection reports | 6 years |
| Insurance appraisals | 6 years |
| Safety records | 6 years |
| Foreign insurance policies | 3 years |
| Item | Suggested retention period |
| Bill of sale | Permanent records |
| Business permits | Permanent records |
| Claims & litigation concerning torts & breach of contract | Permanent records |
| Contracts - employees | Permanent records |
| Contracts - government | Permanent records |
| Contracts - labor union | Permanent records |
| Contracts - special | Permanent records |
| Copyrights | Permanent records |
| Correspondence - legal | Permanent records |
| Deeds / titles | Permanent records |
| Leases / canceled | 10 years |
| Licenses | Permanent records |
| Mortgages | Permanent records |
| Notes receivable - canceled | 10 years |
| Patents | Permanent records |
| Stock & bond record | Permanent records |
| Trademarks - registered | Permanent records |
| Item | Suggested retention period |
| Classified material violations | Permanent records |
| Visitor clearance | 2 years |
| Item | Suggested retention period |
| Receiving documents | 10 years |
| Title papers | Permanent records |
| Vehicle operation maintenance | 2 years |
| Telecommunication copies | 1 year |
| Prepaid dues income | 4 years |
| Financial institution loan loss reserves | Permanent records |
| Mutual savings bank bad debt reserve | Permanent records |
| Item | Suggested retention period |
| Tax return preparers | 4 years |
| Tax returns prepared | 4 years |
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