Record Retention
Keep in mind, this information is provided as a general guideline only. If you have questions about destroying any tax or accounting records, please contact a professional SB&F team member.
Different types of records need to be retained for different periods of time. The amount of time documents need to be kept depends on the IRS and governmental regulations, appropriate laws and other third-party requirements.
All retention periods begin with the date the return was filed. If the statute of imitations concerning a tax year is extended, the retention period should be extended accordingly.
| ACCOUNTING RECORDS | RETENTION PERIOD |
| Accounts Payable & Receivable | 7 years |
| Auditors’ Reports | Permanent |
| Bank Debt Deduction | 7 years |
| Credit Memos | 4 years |
| Depreciation Schedules | 7 years |
| Expense Records ( Receipts & Invoices) | 7 years |
| Financial Statements (Annual) | Permanent |
| Freight Bills | 4 years |
| General Ledger | 7 years |
| Inventory Records | 7 years (Permanent for LIFO system) |
| Loan Payment Schedules | 7 years |
| Petty Cash Vouchers | 4 years |
| Purchase Orders (1 Copy) | 7 years |
| Sales/Revenue Records | 7 years |
| BANK RECORDS | RETENTION PERIOD |
| Bank Reconciliations | 7 years |
| Bank Statements | 7 years |
| Cancelled Checks | 7 years (Permanent for Real Estate purchases) |
| Electronic Payment Records | 7 years |
| CORPORATE RECORDS | RETENTION PERIOD |
| Articles, Bylaws & Minutes | Permanent |
| Business Licenses | Permanent |
| Contract – Major | Permanent |
| Contract – Minor | Life + 4 years* |
| Leases/ Mortgages | Permanent |
| Legal Correspondence | Permanent |
| Note Agreements | Life + 6 years* |
| Patents/Trademarks/Copyrights | Permanent |
| Stockholder Records & Registers | Permanent |
| Stock Transactions | Permanent |
| EMPLOYEE RECORDS | RETENTION PERIOD |
| Benefit Plans | 7 years |
| Employee Files (Former Employees) | 7 years* (or statute of limitations for employee lawsuits) |
| Employment Applications | 3 years |
| Employment Taxes | 7 years |
| Payroll Records | 7 years |
| Time Cards & Daily Time Sheets | 4 years |
| PENSION/PROFIT SHARING RECORDS | RETENTION PERIOD |
| Actuarial Reports | Permanent |
| Associated Ledgers & Journals | Permanent |
| Financial Statements | Permanent |
| IRS Approval Letter | Permanent |
| Plan & Trust Agreement | Permanent |
| REAL PROPERTY RECORDS | RETENTION PERIOD |
| Real Estate Purchases (Escrow Documents) | Permanent |
| Construction Records | Permanent |
| Leasehold Improvement Records | Permanent |
| Home Improvement Records | Permanent |
| Lease Payment Records | Life + 4 years* |
| TAX RETURNS | RETENTION PERIOD |
| Federal & State Returns | Permanent |
| IRS & State Tax Audit Reports | Permanent |
| Tax Related Correspondence | Permanent |
| *Retention period begins after termination, expiration, disposal, etc…of item. | |
