Record Retention Schedule
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.