262.632.6255

Fax: 262.632.6391

1choicetaxracine@gmail.com

4425 Taylor Avenue
Racine, WI 53405

The Most Reliable and Dependable Tax Service in Racine & Kenosha Counties

Hours of operation:
M-Th:  8:30 – 5:30 | F:  8:30 – 4:30
Sa:  8:30 – 1:00 (Seasonal)

Record Retention Guide

Storing tax records: How long is long enough

Business Records to Keep…
1 Year
3 Years
6 Years
Forever

Personal Records to Keep…
1 Year
3 Years
6 Years
Forever

Special Circumstances

If possible, create a backup set of records and store them electronically. Keeping a backup set of records — including, for example, bank statements, tax returns, etc. — is easier than ever now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet.

You might also consider online backup, which is the only way to ensure that data is fully protected. With online backup, files are stored in another region of the country, so that if a hurricane or other natural disaster occurs, documents remain safe.

Caution: Identity theft is a serious threat in today’s world, and it is important to take every precaution to avoid it. After it is no longer necessary to retain your tax records, financial statements, or any other documents with your personal information, you should dispose of these records by shredding them and not disposing of them by merely throwing them away in the trash.

Business Documents To Keep For One Year
• Correspondence with Customers and Vendors
• Duplicate Deposit Slips
• Purchase Orders (other than Purchasing Department copy)
• Receiving Sheets
• Requisitions
• Stenographer’s Notebooks
• Stockroom Withdrawal Forms

Business Documents To Keep For Three Years
• Employee Personnel Records (after termination)
• Employment Applications
• Expired Insurance Policies
• General Correspondence
• Internal Audit Reports
• Internal Reports
• Petty Cash Vouchers
• Physical Inventory Tags
• Savings Bond Registration Records of Employees
• Timecards For Hourly Employees

Business Documents To Keep For Six Years
• Accident Reports, Claims
• Accounts Payable Ledgers and Schedules
• Accounts Receivable Ledgers and Schedules
• Bank Statements and Reconciliations
• Cancelled Checks
• Cancelled Stock and Bond Certificates
• Employment Tax Records
• Expense Analysis and Expense Distribution Schedules
• Expired Contracts, Leases
• Expired Option Records
• Inventories of Products, Materials, Supplies
• Invoices to Customers
• Notes Receivable Ledgers, Schedules
• Payroll Records and Summaries, including payment to pensioners
• Plant Cost Ledgers
• Purchasing Department Copies of Purchase Orders
• Sales Records
• Subsidiary Ledgers
• Time Books
• Travel and Entertainment Records
• Vouchers for Payments to Vendors, Employees, etc.
• Voucher Register, Schedules

Business Records To Keep Forever
While federal guidelines do not require you to keep tax records “forever,” in many cases there will be other reasons you’ll want to retain these documents indefinitely.
• Audit Reports from CPAs/Accountants
• Cancelled Checks for Important Payments (especially tax payments)
• Contracts, Leases Currently in Effect
• Corporate Documents (incorporation, charter, by-laws, etc.)
• Deeds
• Financial Statements (Year End)
• IRS Revenue Agents’ Reports
• Legal Records, Correspondence and Other Important Matters
• Trademark and Patent Registrations

Personal Documents To Keep For One Year
• Bank Statements
• Paycheck Stubs (reconcile with W-2)
• Canceled checks
• Monthly and quarterly mutual fund and retirement contribution statements (reconcile with year end statement)

Personal Documents To Keep For Three Years
• Credit Card Statements
• Medical Bills (in case of insurance disputes)
• Utility Records
• Expired Insurance Policies

Personal Documents To Keep For Six Years
• Supporting Documents For Tax Returns
• Accident Reports and Claims
• Medical Bills (if tax-related)
• Property Records / Improvement Receipts
• Sales Receipts
• Wage Garnishments
• Other Tax-Related Bills
• Income Tax Returns

Personal Records To Keep Forever
• CPA Audit Reports
• Legal Records
• Retirement and Pension Records

Special Circumstances
• Car Records (keep until the car is sold)
• Insurance Policies (keep for the life of the policy)
• Mortgages / Deeds / Leases (keep 6 years beyond the agreement)
• Pay Stubs (keep until reconciled with your W-2)
• Property Records / improvement receipts (keep until property sold)
• Sales Receipts (keep for life of the warranty)
• Warranties and Instructions (keep for the life of the product)
• Other Bills (keep until payment is verified on the next bill)
• Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset)

 

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