How Long to Keep Tax Records: 3-Year, 6-Year, and 7-Year Rules
A clear guide to how long to keep tax records, including the 3-year, 6-year, and 7-year rules. Covers employment-tax records, asset-basis records, and what to keep forever.
There is no single answer. The IRS uses different retention periods depending on what is at stake. The general rule is 3 years. It stretches to 6 years if you left out more than 25% of your gross income, 7 years if you claim a loss from worthless securities or a bad debt, and at least 4 years for employment-tax records. If you never filed a return, or filed a fraudulent one, there is no clock at all. Below is how to apply each rule without overthinking it.
The Periods, One at a Time
3 years (the default). For most returns, keep records for 3 years from the date you filed. This is the standard window tied to the period of limitations for that return. If your situation is ordinary, this is your number.
6 years. If you omit more than 25% of the gross income you should have reported, keep records for 6 years. This is not about honest math errors. It is about a substantial understatement of income, which extends the assessment window.
7 years. If you file a claim for a loss from worthless securities or a bad-debt deduction, keep the supporting records for 7 years. These claims have their own longer window because they can be hard to verify after the fact.
At least 4 years (employment taxes). Keep all employment-tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. If you have any employees, this is a separate rule you keep alongside the others.
Indefinitely. If you did not file a return, or you filed a fraudulent one, keep the records indefinitely. There is no period of limitations to run out.
Quick Reference Table
| Keep how long | What it covers |
|---|---|
| Indefinitely | Years you did not file, or filed a fraudulent return |
| At least 4 years | Employment-tax records (if you have employees) |
| 7 years | Claims for worthless-securities or bad-debt losses |
| 6 years | Returns where you omitted more than 25% of gross income |
| 3 years | Most ordinary returns (the default) |
| Until you sell, then 3+ years | Records that support an asset’s basis |
Why Asset-Basis Records Are Different
Basis records do not follow the calendar of the return. They follow the asset.
Basis is what you paid for something, adjusted over time for improvements and depreciation. You need it to figure your gain or loss when you sell. So you keep purchase records, improvement receipts, and depreciation schedules until the period of limitations runs out for the year you actually dispose of the asset.
Think about a rental property you bought in 2010 and sell in 2030. The 2010 closing statement is not “old paperwork.” It is the cost basis you will report on your 2030 return. Toss it in 2013 because it was three years old and you have thrown away the proof of what you paid. Keep basis records until after the sale, then apply the normal 3-year rule to the year of the sale.
How to Actually Manage This
Most people do not want to track five separate clocks. So simplify into two buckets:
- Archive long term: asset-basis records, employment-tax records, and copies of the returns themselves
- Standard hold: ordinary supporting documents for the 3-year window, kept by tax year
A few practical notes:
- The 3-year clock runs from the date you filed. File early and the clock still starts on the due date for that purpose.
- Keep copies of the returns themselves longer than the supporting documents. They are small and they prove you filed.
- When in doubt between two periods, keep for the longer one. Storage is cheap.
Run the Tax Return Documentation Checkup to review your own records before you file.
A Worked Example
You are a freelancer who filed your 2026 return on time in April 2027. No omitted income, no special loss claims, no employees. Your default retention runs 3 years from filing, so plan to hold the 2026 supporting documents into 2030. The exception: you also bought a $4,000 camera rig in 2026 and are depreciating it. Those purchase and depreciation records stay until after you sell or scrap the rig, then ride out the 3-year window on the year of disposal.
Frequently Asked Questions
Does the 3-year period start from the tax year or the filing date?
From the date you filed the return. If you filed before the due date, it is generally treated as filed on the due date for counting purposes. Either way, the year of the return is not the trigger. The filing is.
Should I keep the tax returns themselves forever?
Keeping copies of your filed returns long term is a smart habit. They are small, and they are your record that you filed. The supporting documents can follow the retention periods above, but the return itself is worth holding onto.
Do these rules cover state taxes too?
These are the federal IRS periods. Some states use longer windows, so check your state’s rules. When the two differ, keep records for whichever period is longer.
The point of retention rules is simple: be able to back up what you reported for as long as that year could come up. Keep the right things for the right window and you are never scrambling.
Before you file, run the Tax Return Documentation Checkup to confirm your records cover the years that still count.
Related guides
- Small Business Recordkeeping Checklist: What to Keep for Taxes
- Records the IRS May Request in an Audit
- Home Office Deduction 2026: Simplified vs. Actual Method
Sources
Last reviewed: June 21, 2026.
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