You must keep records, such as receipts, canceled checks, and other documents that support an item of income, a deduction, or a credit appearing on a return.
The IRS generally recommends that you keep your tax records for at least three years from the date you filed your return or two years from the date you paid the tax, whichever is later. This is the period during which the IRS can audit your return or you can amend your return to claim a refund.
However, in cases where you underreport income by more than 25%, the IRS can go back six years. If you file a fraudulent return or don’t file at all, there’s no statute of limitations, meaning the IRS can audit you at any time.
For this reason, it’s wise to keep important tax documents like W-2s, 1099s, and receipts for deductions in a safe, organized place for at least seven years.
