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Record Retention Periods

The following types of records and retention periods are general guidelines, and may differ by industry.

Accident Reports/Claims (settled cases) 7 Years
Accounts Payable Ledgers and Schedules 7 Years
Accounts Receivable Ledgers and Schedules 8 Years
Audit Reports Permanently
Bank Statements 3 Years
Capital Stock and Bond Records (ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc.) Permanently
Charts of Accounts Permanently
Checks (Cancelled checks for important payments, special contracts, purchase of assets, payment of taxes, etc.) Permanently
Checks (Cancelled except those noted above) 7 Years
Contracts and Leases (Expired) 7 Years
Contracts and Leases still in effect Permanently
Correspondence (General) and schedules 2 Years
Correspondence (Legal) and important letters Permanently
Correspondence (Routine) with customers and vendors 2 Years
Deeds, Mortgages and Bills of Sale Permanently
Depreciation Schedules Permanently
Employee Personal Records (Following termination) 7 Years
Employee Applications 3 Years
Financial Statements (Year-end - other months are optional) Permanently
General Ledgers and Year-end Trial Balances Permanently
Insurance Records and Policies Permanently
Internal Audit Reports 3 Years
Inventory Records 7 Years
Invoices (To customers or from vendors) 7 Years
IRA and Keogh Plan Contributions, Rollovers, Transfers and Distribution Permanently
Minute Books of Directors, Stockholders, Bylaws and Charter Permanently
Payroll Records, Summaries and Tax Returns 7 Years
Petty Cash Vouchers 3 Years
Property Records (Including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints and plans) Permanently
Purchase Orders 3 Years
Receiving Sheets 1 Year
Safety Records 6 Years
Sales Records 7 Years
Stock and Bond Certificates (Cancelled) 7 Years
Subsidiary Ledgers 7 Years
Tax Returns, Revenue Agent Reports, other documents relating to determination of tax liability Permanently
Time Cards and Daily Reports 7 Years
Trademark Registrations, Patents and Copyrights Permanently
Voucher Registers and Schedules 7 Years
Vouchers of Payment (To vendors, employees, etc. - Includes allowances and reimbursements of employees, officers, etc. for travel and entertainment expenses) 7 Years

The normal statute of limitations for federal tax returns is three years, but it can be expanded to six years under some circumstances.  The statute of limitations remains open if a return is not filed or if fraud is involvedThe Internal Revenue Service can audit a tax return at any time for three years.  Since an individual state's statute of limitations can exceed the federal statute, the number of retention years should be the longer of the two periods.

In deciding upon a record retention schedule, consider keeping indefinitely those records which cannot be recreated by any other office, institution or governmental unit.

 

 

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