Document retention guidelines typically require businesses to store records for one, three or seven years. In some cases, you will need to keep the records forever. If you’re unsure what to keep and what to shred, your accountant, lawyer and state record-keeping agency may provide guidance.

Keep records for 3 years if situations (4), (5), and (6) below do not apply to you. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.

Generally, no penalty is imposed for failure to keep the requiredrecords. However, in case of a dispute with the IRS, the burden of proof is on the taxpayer.Incomplete or nonexistent records may result in interest, penalties and loss of legitimate deductions. This guide provides suggested retention times for specific types of records.