Record Retention Guidelines
Record retention can be a confusing subject. Many individuals and business owners struggle to understand which records to retain and for how long. You likely understand that it is extremely important to hold on to business and individual records in case of an IRS audit or other type of exam. However, retaining unnecessary records takes up valuable storage space that could be made available for more important documents.
Below, we’ve compiled some guidelines for record retention both in the home and for businesses. Keep in mind that these are general-purpose guidelines. Be sure to contact your RBG advisor to consult about any circumstances that are out of the ordinary.
| Record Retention Guidelines – Individual | |
|---|---|
| Accident reports and claims (settled cases) | 7 years |
| Audit reports of accountants | Permanently |
| Bank statements | 7 years |
| Bank deposit slips | 1 year |
| Bank reconciliations | 1 year |
| Checks (cancelled, but see exception below) | 7 years |
| Checks (cancelled, for important payments, i.e. taxes, purchases of property, special contracts, etc.—checks should be filed with the papers pertaining to the underlying transaction) | Permanently |
| Contracts and leases (expired) | 7 years |
| Correspondence (legal and important matters only) | Permanently |
| Deeds, mortgages, bills of sale | Permanently |
| Insurance policies (expired) | 10 years |
| Insurance records, current accident reports, claims, policies, etc. | Permanently |
| Investment account statements | Permanently |
| Property appraisals by outside appraisers | Permanently |
| Property records, blueprints and plans, deeds, mortgages, remodeling/renovation records | Permanently |
| Safety deposit box record storage, include documents such as birth, marriage, and death certificates, wills, stock certificates, advanced medical directives, deeds, passports (check with your accountant and attorney if you have questions) | Permanently |
| Sales receipts for major purchases (car, appliances, furniture, etc.) after disposition of the asset | 7 years |
| Savings bond registration records | 3 years |
| Stock and bond certificates (cancelled) | Permanently |
| Tax returns and worksheets, revenue agents’ reports, and other documents relating to determination of income tax liability, including W-2s, 1099s, estimated payment vouchers, K-1s, charitable giving receipts | Permanently |
| Utility bill receipts (save permanently with tax returns if you take a deduction for home office) | 1 year |
| Record Retention Guidelines – Business | |
|---|---|
| Accident reports and claims (settled cases) | 7 years |
| Accounts payable ledgers and schedules | 7 years |
| Accounts receivable ledgers and schedules, deposit books and slips, credit files, authorization, collection file | 7 years |
| Acquisition documents (after disposition) | 7 years |
| Audit reports of accountants | Permanently |
| Bank statements | 7 years |
| Bank reconciliations | 1 year |
| Capital stock and bond records, ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc. | 7 years |
| Cash books | Permanently |
| Charts of accounts | Permanently |
| Checks (cancelled, but see exception below) | 7 years |
| Checks (cancelled, for important payments, i.e., taxes, purchases of property, special contracts, etc.—checks should be filed with the papers pertaining to the underlying transaction) | Permanently |
| Contracts and leases (after expiration) | 7 years |
| Corporate charter, by-laws, minute books | Permanently |
| Correspondence (general) | 3 years |
| Correspondence (legal and important matters only) | Permanently |
| Deeds, mortgages, and bills of sale | Permanently |
| Depreciation schedules | Permanently |
| Deposit slips, duplicate deposit slips | 7 years |
| Employment applications (if individual becomes an employee, this becomes a part of employee’s permanent record) | 3 years |
| Expense analyses and expense distribution schedules | 7 years |
| Expense reports | 7 years |
| Financial statements (end-of-year, other months optional) | Permanently |
| General and private ledgers (and end-of-year trial balances) | Permanently |
| Insurance policies (after expiration) | 10 years |
| Insurance records, current accident reports, fire inspection reports, safety reports, etc. | 7 years |
| Internal audit reports (in some situations, longer retention periods may be desirable) | 3 years |
| Internal reports (miscellaneous) | 3 years |
| Inventories of products, materials, supplies | 7 years |
| Invoices to customers | 7 years |
| Invoices from vendors | 7 years |
| Journals | Permanently |
| Minute books for directors and stockholders, including by-laws and charters | Permanently |
| Notes receivable ledgers and schedules | 7 years |
| Option records (expired) | 7 years |
| Personnel records: payroll, time reports, benefits, withholding tax records, contracts, insurance, disability and sick benefits, payments to pensioners, etc. (after termination) | 7 years |
| Petty cash vouchers | 3 years |
| Physical inventory tags | 3 years |
| Property appraisals by outside appraisers | Permanently |
| Property records—including costs, depreciation reserves, end-of-year trial balances, depreciation schedules, blueprints, and plans | Permanently |
| Purchase orders & purchase requisitions, quotations, acknowledgements (except purchasing department copy) | 3 years |
| Purchase orders (purchasing department copy) | 7 years |
| Receiving sheets | 3 years |
| Requisitions | 3 years |
| Sales records and reports, customer correspondence, customer orders | 7 years |
| Savings bond registration records of employees | 3 years |
| Scrap and salvage records (inventories, sales, etc.) | 7 years |
| Shipping reports, bills of lading, receiving reports, inspection reports | 3 years |
| Stenographer’s notebooks | 7 years |
| Stock and bond certificates (cancelled) | Permanently |
| Stockroom withdrawal forms | 1 year |
| Subsidiary ledgers (including A/P and A/R ledgers) | 7 years |
| Tax returns and worksheets, revenue agents’ reports, and other documents relating to determination of income tax liability | Permanently |
| Trade mark registrations and copyrights | Permanently |
| Voucher register and schedules | 7 years |
| Vouchers for payments to vendors, employees, etc., (includes allowances and reimbursement of employees, officers, etc. for travel and entertainment expenses) | 7 years |