Permanent Records:

• Tax Returns and Supporting Documents: Annual income tax returns (IRS, state, and local) and supporting documentation (W-2s, 1099s, charitable contributions receipts, etc.)

• Real Estate:Leases (still in effect), deeds, mortgages, invoices for major improvements

• Tax Correspondence: IRS notices, IRS adjustments, communications with tax authorities

• Insurance: Life insurance policies, other active insurance policies

• Personal Records: Medical records, military records

• Personal Balance Sheet: Detailed summary of financial assets held and loans owed at the end of each year

Retain for 7 Years:

• Account Statements: Investment statements, 401k statements, IRA statements CD statements

• Payroll Records: Timesheets, payroll registers, employee expense reports

• Receipts: Receipts for major purchases

Retain for 3-6 Years:

• Bank Statements: Bank statements, electronic payment records, check register

• Real Estate: Keep real estate documents 3-6 years after property has been disposed and taxes have been paid

• Insurance: Expired insurance policies

Retain for 2 Years:

• Pay Stubs: 2 years after year-end, discard all but final pay stub of each year

• Credit Card Statements: Business credit card statements

Note: It is important to store physical copies in a secure location and to have electronic backups to ensure the safety and integrity of your business records. This table should only be used as a guide and recommendations my vary for individual circumstances. You should consult with your attorney and insurance carrier when establishing a record retention policy. It is also recommended reviewing your record retention policy annually and updating it as necessary considering changes in governmental and professional requirements, and the cost of retaining records.