How long must you retain IRS federal tax returns?

Answer 1

Federal Laws specify how long you must retain the documentation to support the filing of income tax returns.

For most taxpayers, this period is three years from the original due date of the return or the date the return is filed, whichever is later. For instance, if you filed your 2006 Form 1040 April 17, 2007 or sooner (disregarding the extended NE "storm" due date), the IRS has until April 17, 2010, to audit the return and assess a deficiency if necessary.

The statute of limitations period extends to six years if a return includes a substantial understatement of income (defined as omitting income greater than 25% of the amount reported on the return). There is no statute of limitations if a taxpayer fails to file a tax return or commits fraud. A taxpayer is considered to have committed fraud if he/she submits a false return or if there is a willful attempt to evade tax.

If a required return is not filed, the records must be kept forever, as the statute of limitations does not begin until the form is filed. Failure to keep adequate records is a separate violation from failing to pay or to file.

There may be non-tax reasons to retain these records. If you are unsure you should contact a financial advisor and/or tax specialist.

Answer 2

There is no age limit -- upper or lower -- on filing taxes.

Answer 3

3 years.

Clarification

There are circumstances that can extend the time for an audit for up to six years. See the discussion at the link provided below.

Answer 4

For every year that you met the MUST FILE A TAX RETURN requirements.