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  1. Home
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  3. Record Retention Schedule

Record Retention Schedule

Posted by Clayton & McKervey on February 6, 2017

Clayton & McKervey Clayton & McKervey

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.

Our team is always ready to help.

Please contact us for more information.

Clayton & McKervey

Clayton & McKervey

Contact Clayton & McKervey

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Record Retention Schedule

Posted by Clayton & McKervey on February 6, 2017

Clayton & McKervey

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.

Our team is always ready to help.

Please contact us for more information.

Clayton & McKervey

Contact Clayton & McKervey

related news

IRS Issues New Guidance on PPP and Employee Retention Credit Eligibility

The IRS issued highly anticipated guidance regarding the employee retention credit (ERC) on Monday, March 1. We have previously outlined how the Consolidated Appropriations Act, passed in December, permitted employers…

Read full story

Honoring International Women’s Day

In honor of International Women’s Day, I’d like to take a moment to recognize the talented women who have helped build our outstanding reputation within the business community – both…

Read full story

How to Calculate R&D Tax Credits

As we’ve seen in the first two installments of this series, business owners often miss out on the R&D tax credit opportunity and the bottom-line infusion it can provide. Many…

Read full story

Doing Business in Mexico: What to Expect this Year

Without a doubt, this year will be interesting for Mexico. To start, it’s an election year and we all know what that means…a lot of uncertainty. As the global pandemic…

Read full story

What Expenses Qualify for R&D Tax Credits?

The R&D tax credit is one of the most overlooked opportunities to boost your bottom line. Many business owners fail to claim it under the mistaken belief that they’re not…

Read full story

Categories

Jump directly to the topics that matter to you most.

  • A&E Professional Services
  • About Us
  • Advisory & Assurance
  • Business Owners
  • C&M Press Releases
  • Careers
  • China Consulting
  • Clayton & McKervey
  • Client Accounting Services
  • Consulting
  • COVID-19
  • Data Analytics
  • Estate Planning
  • Expanding Outside the U.S.
  • Expanding to the U.S.
  • From the President
  • Industrial Automation
  • International
  • Manufacturing & Distribution
  • Mexico Consulting
  • Podcasts
  • Private Client Services
  • Tax & Tax Credits
  • Transaction Services
  • Videos

Authors

Read news direct from our managers and stakeholders.

  • Ben Smith
  • Beth Butchart
  • Bryan Powrozek
  • Carlos Calderon
  • Casey Haggerty
  • Clayton & McKervey
  • Dave Van Damme
  • Denise Asker
  • Eric Lin
  • Jim Biehl
  • Julie Killian
  • Kevin Johns
  • Margaret Amsden
  • Miroslav Georgiev
  • Nina Wang
  • Rob Dutkiewicz
  • Ruben Ramirez
  • Sarah Russell
  • Sue Tuson
  • Tarah Ablett
  • Teresa Gordon
  • Tim Finerty
  • Tim Hilligoss
  • Wendy Reedy

Additional Resources

Additional news from Clayton & McKervey can be found below.

  • Subscribe to our email newsletter
  • View upcoming events
  • Contact us to let us know how we can help you

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