Most lawyers, accountants and bookkeeping services recommend keeping original documents for at least seven years. As a rule of thumb, seven years is sufficient time for defending tax audits, lawsuits and potential claims.
14. The auditor must retain audit documentation for seven years from the date the auditor grants permission to use the auditor's report in connection with the issuance of the company's financial statements ( report release date ), unless a longer period of time is required by law.
KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
The general consensus is to keep your personal returns for 7 years, keeping 7 file folders, one for each year, and then shredding the oldest of those returns once you add the new year's return to the file.
Most bank statements should be kept accessible in hard copy or electronic form for one year, after which they can be shredded. Anything tax-related such as proof of charitable donations should be kept for at least three years.
Generally speaking, for three years
The IRS says you need to keep your records “as long as needed to prove the income or deductions on a tax return.” In general, this means you need to keep your tax records for three years from the date the return was filed, or from the due date of the tax return (whichever is later).
Keep them as long as needed to help with tax preparation or fraud/dispute resolution. And maintain files securely for at least seven years if you've used your statements to support information you've included in your tax return.
Keep canceled checks for one year unless you need them for tax purposes. Refer to them when you reconcile your accounts each month so you know what has cleared. If your bank does not return your canceled checks, you can request a copy for up to five years.
Documents to keep for ever
*Marriage/birth/death certificates, wills, house deeds (if you've paid off your mortgage), and adoption records are only issued in paper form. Losing any of these is a major hassle and can be costly to replace. Keep the paper copies in a locked and fire-resistant security box.
While household bills and bank statements should be kept for at least two years, and insurance documents as long as they are valid.
In general, 401k plan records must be kept for a period of not less than six years after the filing date of the IRS Form 5500 created from those records.
Hold the returns and supporting documents for at least seven years. The IRS can randomly audit you three years after you file — or six years afterward if it thinks you skipped out on reporting your income by at least 25%.
The P60 is an annual statement that shows all of the money you were paid in the tax year. It also shows the income tax paid and National Insurance contributions made during the same year. HMRC recommends that you keep your payslips and P60s for at least 22 months from the end of the tax year.
Credit card statements and utility bills are documents that should be high on anyone's list for shredding. Bills of that nature tend to have very sensitive information. So once payment is confirmed and you no longer need to reference that bill, make sure the document is destroyed.
Comparing your EOBs to your monthly statements is a good way to understand what you are being charged for, and it gives you another opportunity to look for overcharges. Unlike medical bills, EOBs should be kept from three to eight years after your procedure, or indefinitely if you have a reoccurring condition.
Life insurance policies should be stored indefinitely and all other insurance documents should be stored safely for as long as the policies remain active.
Home, auto and umbrella policies - Keep until you get your new policy. For auto insurance, most states accept electronic versions of your insurance card, but it may also be smart to keep a printed version in your glove compartment.
Other records
After paying credit card or utility bills, shred them immediately. Also, shred sales receipts, unless related to warranties, taxes, or insurance. After one year, shred bank statements, pay stubs, and medical bills (unless you have an unresolved insurance dispute).
You can order copies of your statements beyond what is available online, up to 7 years ago. Your statement copy will be delivered online, free of charge. If you are an Online Banking customer, you can sign into Online Banking, and select Statements & Documents under the Accounts tab.
No, you can't, at least in the U.S.. The FDIC (Federal Deposit Insurance Corporation) requires that bank records be kept for 5 years. Anything older than that is shredded.