How long are you supposed to keep expense records?

Answer 1

If you are referring to expense records used for tax purposes, then you should keep them for the same time period you keep copies of all of your tax documents. This should be a minimum of 3 years from when the due date of that tax year's deadline or when the tax was paid, whichever was later. This is so that you have them in the case of an audit (which is typically in that time frame). So for your 2009 tax returns, if you had a deadline of April 15, 2010 and paid your taxes by that date, then you would keep those tax returns until April 15, 2013.

1. You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.

2. You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.

3. You file a fraudulent return; keep records indefinitely.

4. You do not file a return; keep records indefinitely.

5. You file a claim for credit or refund* after you file your return; 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.

6. You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.

7. Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.