Generally, you can discard supporting tax documents (receipts, canceled checks, bank statements) from 2019 and earlier, as the IRS typically has a 3-year statute of limitations to audit from the filing date. Keep actual tax returns, W-2s, and records related to retirement or property for much longer, often indefinitely, for legal and future audit protection.
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.
Based on the three-year rule, in late April 2025, you'll generally be able to discard most records associated with your 2021 return if you filed it by the April 2022 due date.
At minimum, you should keep tax records for as long as the IRS has the ability to audit your tax return or assess additional taxes, which generally is three years after you file your return. This means you potentially can get rid of most records related to tax returns for 2016 and earlier years.
Basic rule: Keep tax returns and records for at least three years. The statute of limitations for the IRS to audit your return and assess taxes you owe is generally three years from the date you file your tax return.
How far back can the IRS go to audit my return? 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 7 year rule
No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule.
Three years: In most cases, you should keep your tax records for three years from the date you initially filed the income tax return or two years from the date you paid the tax (whichever is later). This includes any documents related to potential tax deductions.
You can still file 2020 tax returns
Even though the deadline has passed, you can file your 2020 taxes online in a few simple steps. Our online income tax software uses the 2020 IRS tax code, calculations, and forms. File your 2018, 2019, 2020, 2021, 2022, 2023, and 2024 tax returns.
How long must you save these records? Three years is the general rule. But don't be hasty: Failure to keep a paper trail for the information reported on a tax return could lead to problems if the IRS audits it.
In general, the statute of limitations is three years after you file your return. So you can generally get rid of most records related to tax returns for 2019 and earlier years. (If you filed an extension for your 2019 return, hold on to your records until at least three years from when you filed the extended return.)
Overview. You need to keep records related to your personal or business tax returns. The statute of limitations to examine your return and mail a Notice of Proposed Assessment (NPA) adjusting your return is usually 4 years from the due date of the return, or the date the return is filed.
The IRS generally has 10 years from the assessment date to collect unpaid taxes. The IRS can't extend this 10-year period unless the taxpayer agrees to extend the period as part of an installment agreement to pay tax debt or a court judgment allows the IRS to collect unpaid tax after the 10-year period.
Even if they're old statements, they should be shredded. Your name, address, phone number, and bank account information are in those statements, along with your habits, purchases, and banking history. Even if the account is closed, shred it anyway.
Best Ways to Destroy Paper Documents
Credit card and bank account statements: Save those with no tax return usefulness for about a year, but those with tax significance should be saved for seven years.
If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.
The IRS generally has three years from the date taxpayers file their returns to assess any additional tax for that tax year. There are some limited exceptions to the three-year rule, including when taxpayers fail to file returns for specific years or file false or fraudulent returns.
It's not too late for the 1.5 million taxpayers with unclaimed 2019 refunds to claim their cash, but they need to file soon. The IRS extended the deadline for 2019 tax returns to July 17, 2023.
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.
7 years - For filing a claim for credit or refund due to an overpayment resulting from a bad debt deduction or a loss from worthless securities, the time to make the claim is 7 years from the date the return was due.
Here are a few safe options.
At a glance: The gift giver pays any gift tax owed, not the receiver. You don't have to report gifts to the IRS unless the amount exceeds $19,000 in 2025. Any gifts exceeding $19,000 in a year must be reported and contribute to your lifetime exclusion amount.
You can gift as much as you like during your lifetime without it being subject to IHT – as long as you live for seven years after making the gift.
You can gift your children as much money as you'd like, but you need to keep in mind that your gift may not be tax-free depending on the amount and circumstances.