Howard J Crane, An Accountancy Corporation's recommendations on document retention are listed in the tables below.
Different types of records need to be retained for different time periods. The time documents should be kept depends on appropriate laws, IRS and governmental regulations, and third-party requirements.
These recommendations on Document Retention are general guidelines. They are NOT advice for any specific circumstance! Please contact us for professional advice.
General Financial Records
Type of Record
Retention Period (Years)
Auditors' reports
Permanent
Bank debt deduction
7
Bank deposit slips, reconciliations, statements
4
Bills of lading
4
Budgets
2
Checks - cancelled
4
Contracts - purchase and sales
4*
Credit memos
4
Depreciation records
4*
Employee expense reports
4
Employee payroll records (W-2, W-4, annual earnings records, etc.)
6*
Financial statements -- annual
Permanent
Financial statements -- interim
4
Freight bills
4
Internal reports (Work orders, sales reports, production reports)
4
Inventory lists
4
Invoices - Sales and cash register receipts, merchandise purchases
4
Invoices -- purchases (permanent assets)
4*
General ledger
Permanent
Journals
General, cash receipts, cash disbursement, and purchase journals.
* Retention periods begin after termination, expiration, disposal, etc. of item.
Business Records
Type of Record
Retention Period (Years)
Articles of incorporation
Permanent
Bylaws
Permanent
Capital stock and bond records
Permanent
Contracts and agreements (government construction, partnership, employment, labor, etc.)
Permanent
Copyrights and trademark registration
Permanent
Legal correspondence
Permanent
Minutes
Permanent
Mortgages and note agreements
6*
Patents
Permanent
Personnel files
4*
* Retention periods begin after termination, expiration, disposal, etc. of item.
Insurance Records
Type of Record
Retention Period (Years)
Accident reports
6
Fire inspection reports
6
Group disability records
6
Insurance policies
6 *
Safety records
6
Settled insurance claims
4 *
* Retention periods begin after termination, expiration, disposal, etc. of item.
Pension/Profit Sharing Records
Type of Record
Retention Period (Years)
Actuarial reports
Permanent
Associated ledgers and journals
Permanent
Financial statements
Permanent
IRS approval letter
Permanent
Plan and trust agreement
Permanent
Tax Records
There is no limit for returns that are filed fraudulently or that substantially underreport income.
Type of Record
Retention Period (Years)
Tax returns and cancelled checks
(federal, state and local)
Permanent
Sales and use tax returns
Permanent
Payroll tax returns
4
Pension/profit-sharing informational returns
Permanent
All retention periods begin with the date the return was filed. If the statute of limitations concerning a tax year is extended, the retention period should be extended accordingly.
IRS Information
Additional information on records you should keep and the Federal government's requirements for retention are on line at the Internal Revenue Service's site.
These recommendations on Document Retention are general guidelines. They are NOT advice for any specific circumstance! Please contact us for professional advice.