If you’re wondering how long you should hold on to tax returns, bank statements and other financial records for your business or personal affairs, consult the list below for our recommended record retention guidelines.
While it’s always better to err on the side of caution, if you’re concerned about an audit that may reach back further, reach out to your Aldrich Advisor for any extraneous circumstances.
| How long should I keep this document? | Recommended Retention Time Period |
|---|---|
| Accounts payable ledgers and schedules | 7 years |
| Accounts receivable ledgers and schedules | 7 years |
| Audit reports of accountants | Permanently |
| Bank reconciliations | 1 year |
| Bank statements | 3 years |
| Capital stock and bonds records; ledgers, transfer registers, stubs showing issues, record of interest coupons, etc. | Permanently |
| Cash books | Permanently |
| Charts of accounts | Permanently |
| Checks1 (canceled) | 7 years |
| Checks1 (canceled for important payments, e.g. taxes, purchases of property, special contracts, etc.) | Permanently |
| Contracts, mortgages, notes and leases (expired) plus related schedules | 7 years |
| Contracts and leases (still in effect) | Permanently |
| Correspondence (routine) with customers or vendors | 1 year |
| Correspondence (general) | 3 years |
| Correspondence (legal and important matters only) | Permanently |
| Deeds and bills of sale | Permanently |
| Depreciation schedules | Permanently |
| Duplicate deposit slips | 1 year |
| Expense analyses and expense distribution schedules | 7 years |
| Financial statements (year-end, other months optional) | Permanently |
| General and private ledgers (and year-end trial balances) | Permanently |
| Insurance policies (expired) | 3 years |
| Insurance records, current accident reports, claims, policies, etc. | Permanently |
| Internal audit reports2 | 3 years |
| Internal reports (miscellaneous) | 3 years |
| Inventories of products, materials and supplies | 7 years |
| Invoices (to customers and from vendors) | 7 years |
| Journals | Permanently |
| Minute books of directors and stockholders, including bylaws and charter | Permanently |
| Option records (expired) | 7 years |
| Patents and related papers | Permanently |
| Petty cash vouchers | 3 years |
| Physical inventory tags | 3 years |
| Plant cost ledgers | 7 years |
| Property appraisals by outside appraisers | Permanently |
| Property records, including costs, depreciation reserves, end-of-year trial balances, depreciation schedules, blueprints and plans | Permanently |
| Purchase orders (except purchasing department copy) | 1 year |
| Purchase orders (purchasing department copy) | 7 years |
| Receiving sheets | 1 year |
| Requisitions | 1 year |
| Sales commission reports | 3 years |
| Sales records | 7 years |
| Savings bond registration records of employees | 3 years |
| Scrap and salvage records (inventories, sales, etc.) | 7 years |
| Stockroom withdrawal forms | 1 year |
| Subsidiary ledgers | 7 years |
| Tax returns and worksheets, revenue agents’ reports and other documents relating to determination of income tax liability | Permanently |
| Time book/cards | 7 years |
| Trademark registrations and copyrights | Permanently |
| Training manuals | Permanently |
| Voucher register and schedules | 7 years |
| Vouchers for payments to vendors, employers, etc. (including allowances and reimbursement of employees, officers, etc. for travel and entertainment expenses) | 7 years |
| Withholding tax statements | 7 years |
1 Checks should be filed with the papers pertaining to the underlying transaction.
2 In some situations, longer retention periods may be desirable.
How long should I keep payroll records?
| How long should I keep this document? | Recommended Retention Time Period |
|---|---|
| Accident reports and injury claims (workers’ compensation) | 11 years |
| Age work certification records for minors | 3 years after termination |
| Applications (non-hires) | 1 year |
| Attendance records | 4 years |
| COBRA records | 3 years |
| Employee medical records and analysis as required by OSHA | The duration of employment plus 30 years |
| Employee benefit plans | 2 years following termination of plan |
| Employment advertisements | 3 years |
| ERISA retirement and pension records | Permanently |
| Garnishments | 7 years |
| I-9 Forms | 3 years after employment begins or 1 year beyond termination, whichever is later |
| Labor contracts and union agreements | Permanently |
| Material safety data sheets or some identification of substance used or found | The duration of employment plus 30 years |
| Medical and exposure records relating to toxic substances | 40 years |
| OSHA logs | 5 years following the end of the years to which they relate, plus current year |
| OSHA training documentation | 3 years |
| Paychecks | 8 years |
| Payroll records, including name, address, social security number, wage rate, number of hours worked daily, weekly gross wages, deductions, allowances claimed and net wages | 6 years |
| Personnel file records, including application, pre-employment tests, performance appraisal, rate/position changes, transfers, promotions, demotions, documentation of disciplinary actions and job descriptions | 6 years after termination |
| Records pertaining to unfair or discriminatory employment practices and Americans with Disabilities Act | Until the final deposition of charge or action |
The advice and information contained on this page are offered for reference purposes only and are not exhaustive of all pertinent facts or a comprehensive analysis of all relevant tax issues or authorities. This content should not be considered as professional or legal advice. We strongly recommend consulting with a qualified tax or accounting professional to obtain specific advice or to address your particular circumstances.
