05/29/2026
According to IRS guidelines, most small business owners should keep tax records for at least 3 years from the date the return was filed.
However, there are a few important situations to be aware of.
- You should keep employment tax records for 4 years.
- If you underreported income by more than 25 percent, keep records for 6 years.
- For bad debt or worthless securities, keep records for up to 7 years.
- If no return was filed or it was fraudulent, records should be kept indefinitely.
When in doubt, keeping records longer is usually safer than getting rid of them too early.
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