How Long Do You Have To Keep Tax Returns (Updated 2024)

“`html

How Long Do You Have to Keep Tax Returns?

The Internal Revenue Service (IRS) requires you to keep tax returns for a certain period of time in case they are needed for an audit. The length of time you need to keep your returns depends on the type of return.

Types of Tax Returns

Individual tax returns (Form 1040): 3 years
Business tax returns (Forms 1040, 1120, 1120S): 6 years
Partnership tax returns (Form 1065): 6 years
Trust tax returns (Form 1041): 6 years
Estate tax returns (Form 706): 6 years

IRS Requirements

The IRS requires you to keep your tax returns for the following reasons:

To prove your income and deductions
To verify your tax liability
To support any claims for refunds or credits
To provide documentation in case of an audit

Tips for Storing Your Tax Returns

Here are some tips for storing your tax returns safely:

Keep paper copies: In addition to storing your returns electronically, it is also a good idea to keep paper copies in a secure location.
Store them in a safe place: Keep your returns in a fireproof safe or lockbox. You may also want to consider storing them in a safety deposit box.
Make digital copies: Scan your paper returns and store the digital files on a secure cloud storage service or external hard drive.
Keep them organized: Use a filing system to keep your returns organized and easy to find.
Shred old returns: Once you have reached the end of the retention period, you may shred your old returns.