Tax receipts

[SarahJ12]

How many years do we keep old tax files/receipts?

[Bsch4477]

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

[Opus 17]

The IRS can audit you for 3 years in most cases, but they can audit you up to seven years after you file your return if they allege that you have committed deliberate fraud or made an error that results in an under payment of more than 25% of your tax bill.  So keeping records for 3 or 7 years is a good rule of thumb.

However, there are some exceptions.  You should keep records relating to permanent improvements made to your home, or other records relating to the cost basis of assets, for as long as you owned the home or the asset plus 3 or 7 years after you sell it.  

If you make nondeductible contributions to a traditional IRA and your tax return contains a form 8606, you need to keep those records and copies of form 8606 for as long as you live.  this is to support your claim that some of your IRA withdrawals are non-taxable.

Other experts may have suggestions on other weird items that don’t fit the general three-year rule.