The answer varies by document type. Here’s a practical guide.
Tax Returns: 7 Years
IRS has 3 years to audit (6 years if income understated by 25%+). No limit for fraud or unfiled returns.
Financial Records: 7 Years
Bank statements, credit card statements, invoices, AP/AR records.
Payroll Records: 7 Years
NJ requires at least 6 years. I recommend 7 for alignment.
Entity and Legal Documents: Permanently
Articles of organization, operating agreements, meeting minutes, business licenses.
Property and Asset Records: Life of Asset + 7 Years
Purchase documentation, improvement records, depreciation schedules.
Digital Is Fine
Both IRS and NJ accept digital copies. Scan and store securely.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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