Resources

Record Retention Periods

Organizing, filing and retaining old records is a burden for many businesses.  The following types of records and retention periods are general guidelines and should be tempered by individual business and investment concerns, as well as the advice of legal counsel.

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 on federal returns is three years.  Under some circumstances it is six years, and if a return is not filed or if there is fraud involved, the statute of limitations does not close.

THis means that the Internal Revenue Service under nominal conditions would audit a return any time up through three years.  Since the statute of limitations in some states exceeds the federal statute, the years of retention should be tailored to the longer of the two statutes.

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

 

 

Contact brmdetails@businessrecords.com for more information.

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