WesTex Document, Inc.    

                  Our Business, Is Keeping Your Business - Your Business!

STOP THE ILLEGAL DUMPING OF RECORDS!

How long should your records be kept? For normal business or personal records the following information may serve as a start. 

Throw Out Now

Credit card receipts and credit card statements that either have no tax impact or do not document important assets; receipts or other papers relating to ownership or repair of items of lesser value you have thrown out, sold, or given away.

Keep 3 to 6 Years

Tax-related documents. Generally 3 years because that is the statute of limitations for assessing taxes. The limitation of 6 years applies if there is at least a 25% understatement of income or no limitations in the case of fraud.

Keep Indefinitely

Records relating to purchases, improvements, and tax return treatment of important assets such as real estate, which should be kept until asset is sold, plus three years. This also applies to rolled-over assets. Records relating to investments, IRA's, Keogh plans, pensions, insurance contracts, and other contracts should be kept until the transaction has been fully completed and/or all funds have been withdrawn (which sometimes means indefinitely). This "keep indefinitely" rule means that records of all contributions, distributions, or rollovers for IRAs and other retirement plans should, for peace of mind and security, probably kept forever.

Keep Permanently

Birth certificates or adoption records, military records, marriage or divorce records, custody agreements, and proof of naturalization for naturalized citizens

RECORDS RETENTION GUIDELINES CHART

Type of Record                                Retention Period     

Audit Reports. . . . . . . . . . . . . . . . . . . . . . . . . . .  .Permanent                  

Bank deposit slips & statements . . . . .. . . . . .  .6 years *

Cancelled checks . . . . . . . . . . . . . . . . .  . . . . . .. 3 years *

Contracts & leases . . . . . . . . . . . . . . . .  . . . . . .. Permanent

Corp stock records & minutes . . . . . . .. . . . . . .. Permanent

Daily sales records & journals  . . . . . . .. . . . . .  .6 years *

Depreciation schedules . . . . . . . . . . . .  . . . . . .. .Life of asset +3yrs

Employee records . . . . . . . . . . . . . . . . .  . . . . .  . Period of employment +3yrs

Entertainment & expense records . . . . . . . . . .. .6 years *

Financial statements, ledgers, journals . . . . . .. .Permanent

Inventory records . . . . . . . . . . . . . . . . . . . . . . . .  . 3 years **

Paid vendor invoices . . . . . . . . . . . . . . . . . . . . .. .3 years *

Real estate records . . . . . . . . . . . . . . . . . . . . . .. . Permanent

Tax & legal correspondence . . . . . . . . . . . . . . .. . Permanent

Health Information . . . . . . . . . . . . . . . . . . . . . . . . . .. . 10 years (more medical records retention periods)

* From the tax return due date or filing date, plus any amended returns; whichever is later      

** Longer if the LIFO method is used.

Disclaimer: this page does not have any official authority and should not be acted upon without seeking professional advice.