It’s clean out time - the files are full. I would love to shred away, but am uncomfortable with some of the retention guidelines, even those issued by the IRS. And, I recognize that some documents I have filed by tax year may be needed for other purposes, for example, documents supporting real estate transactions. I wondered if anyone has come across a good checklist for records retention? Lots of articles on the internet, but I’ve left with a sense of “keep everything for ever - ya never know”. This isn’t particularly helpful!
My immediate response was going to be, “forever”, not because I think they might be needed, but because I haven’t gotten around to throwing the old stuff out yet. Although I think some files didn’t make the trip when we moved 8 years ago. Paying 45 cents per pound really motivates one to value every item. Wouldn’t it be great to scan all your documents and store them digitally? That would keep you busy for a few years. Seven years sticks in my head for some reason. We have luckily never been audited so I haven’t had to dig out my old records.
We keep taxes and supporting documents for the last 7 or 8 years. I think for real estate, you only need the HUD document for when you sell your house. Any construction receipts too if your house goes beyond the $500,000 increase to avoid capital gains tax.
We had ours since my DH’s first job in 1976. When I was off last fall I scanned them all except the last 7 years. Then I shredded them. I think you only have to keep 5 I believe.
Well…we really keep only the last 7 years of taxes. Everything else gets shredded at the end of the calendar year. BILs get shredded the minute they are paid.
But this is funny. I needed to,buy back two years of school teaching from another state in 1979-81. Oddly, I had those tax returns tucked away in an old drawer…so I had proof that I worked in the district. Made it easy peasy to get those two years verified and purchased!
Regular audits only go back three years – but – if they accuse you of fraud, they can go back seven – so the standard practice is to hold records for at least 7 years. Some folks need to hold more if they’ve got complex business or depreciation stuff, but that’s well outside my knowledge.
For tax returns it is 7 years. I file electronically, so I have them both on the computer and have a hard copy, too. The other records you should keep revolve around the house, you should keep the original sale information on the house to establish cost basis, and you should keep records of any of the money spent on the house, any kind of construction or other improvements to the house, replacing the steps, the chimney, putting in a new furnace, hot water heater, or other improvements go towards the cost basis, which can cut down any capital gains about the current threshold when selling the house (I personally keep records of everything, and when it comes time to sell, I can worry about whether it counts or not).
I keep all the tax returns from about 1995. Came in handy because I had to redo some tax returns from the 1990’s.
I know this is extremely rare. 
There is a lot of information on tax returns. I would keep them.
Seven is in the case of a “substantial understatement.” There’s no statute of limitations for fraud.
I recommend keeping tax returns forever. Among the reasons listed here (http://www.marketwatch.com/story/never-throw-away-your-tax-returns-2013-04-20), I’m particularly swayed by their potential value as evidence in case you think your Social Security earnings record is wrong.
When my mother died, we shredded at least 40 years of tax returns. I will NOT do that to my kids. Sorry…just won’t.
You can check your SS earnings annually. I see no reason to keep tax returns forever to do that.
The article I linked provides other reasons as well. My 35 years of tax returns don’t take up much space. I feel no compunction about my children someday having to shred those; I’m much more concerned about them potentially having to wade through items their father and grandparents hoarded.
I have all of my returns from 1973 until now. I do the taxes for my mother, my kids and my housekeeper so I have copies of all of those, too. I save everything! You’d be surprised at the number of times I’ve had to refer back to some of those old returns for information I needed.
I’m so glad I’m not the only saver out there! Thanks to all, I feel better about the number of returns and supporting documents I’ve accumulated.
Well, I came here hoping there would be uniform agreement that I could clean out all my old tax returns. I guess not. 
Yikes! I am not reading this thread anymore and continue to shred all returns from more than 3 years ago.
Iglooo–make that 7 years.
Keep property stuff until you sell it.
Just don’t do like my sister did–keep not only the return but all the directions and booklets too. Talk about a mess!
Business I worked at the government rules were to keep files seven years (not tax stuff–medicare and patient files) so we happily started finally clearing (we had stuff 20 years old so it was a joy to get rid of stuff) Year later they changed the rule to save 9 years of stuff --WHAT !?
Save it if you have any inkling you may need it. But if something has a “end of year” recap then shred the inbetween stuff.
“Keep property stuff until you sell it.”
Anything that can be used to back up the cost basis of an asset should be kept. For example, if you ever paid AMT triggered by the purchase of an ISO, keep that return/records. Here is why:
I actually needed to go back and look up my tax return from 2002 recently because I was spotty about reporting non deductible IRA contributions. I was glad I had them.
I didn’t have to go back to 2002, but after my car accident, I had to produce 7 years of tax statements. Mind you, I didn’t request expenses from time lost from work. Still. My accountant now has records online, nut he didn’t have the early ones. I keep the forms sent to IRS, but not all 1099s or worksheets.