Standard retention periods:

3 years: Tax returns and supporting documents (standard IRS audit period)

7 years:

– Payroll records

– Financial statements

– Records if claiming loss from worthless securities

– Records if you don’t report income you should have

Permanently (forever):

– Business formation documents

– Property records

– Loan documents

– Contracts

After closing business: Keep all records for 7 years minimum.

The IRS can typically audit 3 years back, but 6 years if you underreport income by 25%+. When in doubt, keep longer.