How long should I keep my tax records in 2025?

The IRS generally recommends keeping tax records for 3 years from the date you filed your return or 2 years from the date you paid the tax, whichever is later. However, several situations require longer retention periods.

Key retention timelines:

• 3 years: Standard rule for most filers (IRC Section 6501)
• 6 years: If you underreported income by more than 25% of gross income
• 7 years: If you claimed a deduction for worthless securities or bad debt (Section 6511)
• Indefinitely: If you filed a fraudulent return or did not file at all
• Indefinitely: Keep records related to property basis until you sell the asset, then keep for 3 more years

What to keep: W-2s, 1099s, receipts for deductible expenses, records of charitable donations, home purchase/improvement records, investment purchase records showing cost basis, and copies of filed returns. The IRS can audit returns up to 3 years old in most cases, but the statute extends to 6 years if substantial underreporting is suspected.

Practical tip: Scan paper documents and store them digitally with backups. The IRS accepts electronic records as long as they are legible and accurate reproductions of the originals. Keep Form 8606 (nondeductible IRA contributions) indefinitely since you will need it to calculate taxes on future withdrawals.