As companies and individuals often inquire about how long to maintain records as both a best practice, and for legal reasons, the table below offers these guidelines.
Item | Record Retention |
1099s | 7 years |
Accident reports / claims (settled cases) | 7 years |
Accounts payable & receivable ledgers and schedules | 7 years |
Audit reports | Permanent |
Bank deposit slips | 7 years |
Bank reconciliations | 2 years |
Bank statements | 7 years |
Board minutes | Permanent |
Brokerage statements (year-end) | Ownership + 7 years |
Business licenses | Permanent |
Bylaws | Permanent |
Capital stock and bond records | Permanent |
Cash books | Permanent |
Charitable contribution records | 7 years |
Chart of accounts | Permanent |
Checks – Taxes, real estate, special contracts (file with papers related to transaction) Checks – Supporting tax deductions for individual tax return Checks – All other |
Permanent 7 years 7 years |
Construction records | Permanent |
Contracts – major Contracts – minor |
Permanent Life + 4 years |
Correspondence – General Correspondence – Legals and important matters Correspondence – Routine (with customers and/or vendors) |
2 years Permanent 2 years |
Credit card statements | 7 years |
Deeds, mortgages and bills of sale | Permanent |
Depreciation schedules | Permanent |
Dividend reinvestment records | Ownership + 7 years |
Divorce documents | Permanent |
Electronic payment records | 7 years |
Employee files (ex-employees) | 7 years |
Employment applications | 3 years |
Employment taxes | 7 years |
Estate planning documents | Permanant |
Expense records | 7 years |
Financial statements (annual) | Permanent |
Fixed asset purchases | Permanent |
General/private ledgers | Permanent |
Home purchase and improvement documents | Ownership + 7 years |
Home repair receipts | Warranty period |
Insurance policies | Life + 3 years |
Insurance records, current accident reports, claims, etc. | Permanent |
Internal audit reports (longer retention periods may be desirable) | 3 years |
Inventory records – LIFO Inventory records – All other |
Permanent 7 years |
Investment purchase and sales documents | Ownership + 7 years |
IRA annual reports and nondeductible contributions Form 8606 | Permanent |
Journals | Permanent |
Leasehold improvements | Permanent |
Lease payment records | Life + 4 years |
Leases / mortgages | Permanent |
Loan payment schedules | 7 years |
Loans | Term of loan + 7 years |
Mutual fund annual statements | Ownership + 7 years |
Notes receivable ledgers and schedules | 7 years |
Options records (expired) | 7 years |
Patents / trademarks | Permanent |
Payroll records | 7 years |
Pension / 401k / profit sharing plans | Permanent |
Petty cash vouchers | 3 years |
Physical inventory tags | 3 years |
Plant cost ledgers | 7 years |
Property appraisals by outside appraisers | Permanent |
Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints and plans | Permanent |
Purchase orders | 7 years |
Real estate purchases | Permanent |
Receiving sheets | 1 year |
Retirement plan annual reports | Permanent |
Requisitions | 1 year |
Sales commission reports | 3 years |
Sales records | 7 years |
Scrap, salvage records (inventories, sales, etc.) | 7 years |
Shareholder records | Permanent |
Stock registers and transactions | Permanent |
Subsidiary ledgers | 7 years |
Tax returns and other documents relating to determination of income tax liability | 7 years* |
Time books / cards | 7 years |
Trademark registration and copyrights | Permanent |
Trial balance (year-end) | Permanent |
Training manuals | Permanent |
Union agreements | Permanent |
Voucher register and schedules | 7 years |
Vouchers for payments to vendors, employees, etc. (Includes allowances and reimbursement of employees, officers, etc., for travel and entertainment expenses.) | 7 years |
W-2 forms | 7 years |
*Tax returns supporting net operating loss carryforwards should be maintained until the net operating loss is used plus 7 years. Tax documents that support basis in a pass-thru entity (K-1’s) should be maintained until the interest in the entity is disposed of plus 7 years.