How long do I need to keep certain tax records for the IRS?

Tax records such as receipts, canceled checks, and other documents that prove to the IRS an item of income or a tax deduction appearing on your tax return should be kept until the statute of limitations expires for that tax return. Usually this is three years from the date the tax return was due or tax return was filed with the IRS, or two years from the date the tax was paid to the IRS, whichever is later. This is the time period in which the IRS can question your tax return - typically three years after it is filed. There is no statute of limitations when a tax return is false or fraudulent or when no tax return is filed with the IRS. You should keep some tax records indefinitely, such as tax records relating to property, since you may need those tax records to prove to the IRS the amount of gain or loss if the property is sold.

How long you should keep tax records depends primarily on various statute of limitations provisions. Exceptions are below:

If you are an employer, you must keep all your employment tax records for at least four years after the tax is due or paid to the IRS, whichever is later. People in business often have expenses for travel, entertainment, and gifts. The documentation you should keep for each of these expenses can be found in IRS tax Publication 463, Travel, Entertainment, Gift and Car Expenses.