How long should I keep tax records?
Short answer: At least three years after filing for most records, longer in some cases. Keep property and investment basis records until you sell and then some.
General rules from the IRS:
- 3 years from filing for most returns and supporting records.
- 6 years if income was underreported by more than 25%.
- 7 years if you claimed a loss from worthless securities or a bad debt.
- 4 years for employment tax records if you have employees.
- Indefinitely if a return was never filed or was fraudulent.
Keep records that set your cost basis, such as home purchase and improvement records and investment purchase records, until at least three years after you report the sale. Utah generally follows similar timing.
General information from Davis Schuler & Associates, LLC, not advice for your situation. Tax rules and thresholds change; confirm the current rules before acting.
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