Recordkeeping Requirements
Suggested Holding Periods for Tax Records:
1. It is a good policy to save copies of your 1040 and supporting schedules for a minimum of (7) Seven years.
2. The IRS requires record retention as long as they are important for Federal Tax law. Generally this means: *3 years from the date the return is filed...or *2 years from the tax payment date...or * 6 years, if income is under-reported by more than 25% (whichever is later)
3. Keep ALL--bank statements, checks, receipts and other financial records for at least three (3) years, especially those documents that will support your tax return figures.
4. HOLD INDEFINITELY * All papers and receipts that deal with any purchase, sale and major improvement of your current and all previous principal residences. *All IRA records, investment purchases and sales.