3 Records You Should Keep Indefinitely Once Your Taxes Are Filed

I’m a Tax Expert: 3 Records You Should Keep Indefinitely Once Your Taxes Are Filed

Kerra Bolton   Fri, March 14, 2025  GOBankingRates

While it could be tempting to throw away documents after filing tax returns, doing so could put you at financial and legal risk. Maintaining certain financial records indefinitely can safeguard against future tax disputes, facilitate asset management and ensure compliance.

 “It is important to keep documents that affect future years forever, such as documents related to losses that have created carryovers, agreements and investment records, which may create future cash basis,” said Crystal Stranger, senior tax director and CEO of Optic Tax.

While the IRS provides guidelines on the minimum duration for retaining various documents, GOBankingRates spoke to two tax and financial experts to explore three records you should keep indefinitely once your taxes are filed.

Filed Tax Return Copies

Individuals should keep copies of their filed federal and state tax returns even for years after they’re filed.

“General tax return documents should be kept at least three years,” Stranger said. “But it can be good to keep records for seven years, because the IRS could go back that far if there are certain types of underreported income or fraud.”

These documents serve as a historical record of an individual’s income, deductions and tax payments.

“If you get rid of tax records and then later need them, you will not have what you need to substantiate your deductions or credits,” Stranger explained. “This can cause a loss or reduction in allowed deductions, and you could end up owing taxes.”

Property and Real Estate Records

Documents related to property ownership, such as deeds, titles and records of significant home improvements, should also be kept.

TO READ MORE:  https://www.yahoo.com/finance/news/m-tax-expert-3-records-160112864.html