How long to keep tax returns? That was a popular question right after the tax deadline ^[1] recently passed. However, the answer isn’t as straight forward as everyone would like it to be.

According to the IRS, here are the guidelines on how long to keep tax records:

Keep Tax Returns Forever

• If you filed a fraudulent return, keep your tax returns forever.
• If you did not file a return, keep your tax records forever.

Keep Tax Returns for 7 Years

• If you claimed a worthless security loss or deducted a bad debt, keep your tax records for 7 years.

Keep Tax Returns for 6 Years

• If you grossly underreported your taxable income (more than 25% of the gross income on your return), keep your tax return for 6 years.

Keep Tax Returns for 3 Years

• If the above don’t apply, keep your tax returns for 3 years.
• If you filed an amended tax return ^[2], keep your tax return for 3 years or 2 years from when you paid the tax if it’s later.

Other Tax Records to Keep

In addition to keeping your tax return, you’ll also need to keep information that supports those tax returns including:

• Canceled Checks
• Credit Card Statements
• Old Bank Statements
• Retirement Plan Contributions

You can also see how long to keep records ^[3] for the retention length of other papers and records.

How Long Should I Keep Old Tax Returns?

What’s the bottom line? If the IRS can audit you indefinitely for not filing a return, you’re going to have to prove that you did. In addition, it would be hard to prove you didn’t file a fraudulent return if you didn’t keep the supporting tax documents.

Therefore, we keep all of our tax returns and tax records forever. If you really want to throw them out, be sure you keep your tax returns for 7 years.