--- title: "How Long to Keep Business Records: IRS Guidelines | MCC" description: "General retention guidance by record type and how to organize. Confirm periods in current IRS and state guidance." url: "https://mcc-solutionsnj.com/bookkeeping/guides/how-long-to-keep-business-records" --- Bookkeeping guide · Updated October 7, 2026 # What business records to keep, and for how long Keeping everything forever is not practical, and throwing it away too soon is risky. Here are general guidelines. Check with your tax professional for your situation. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** The IRS generally recommends keeping records for three years from the date you file a return, six years if you left out more than 25% of your income, and indefinitely if you did not file or filed a fraudulent return. Bad debt deduction records are typically kept seven years. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) · [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) **Free tools:** [True cost of an employee](/bookkeeping/employee-cost-calculator) · [Contractor vs employee cost](/bookkeeping/contractor-vs-employee-cost-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## The general IRS rule The IRS generally recommends keeping records for three years from the date you file a return. It extends to six years if you left out more than 25% of your income, and indefinitely if you did not file or filed a fraudulent return. Records of bad debt deductions are typically kept for seven years. ## Employment tax records Keep employment tax records for at least four years after the tax is due or paid, whichever is later. This includes payroll reports, deposits, W-4s and W-9s. ## Keep long-term Formation documents, operating agreement, EIN letter, tax returns, annual financial statements, asset purchase records, loan documents and lease agreements. Keep property and equipment records until the limitations period ends for the year you dispose of them. ## Keep digitally Scanned records are generally acceptable. Store them in a folder that is backed up, with consistent names like year, vendor and date. Photos of receipts attached to the transaction in your software work well. ## Do not forget state rules New Jersey has its own retention expectations for tax records. Check the Division of Taxation guidance, and keep sales tax and payroll records longer when in doubt. ## Worked example with numbers Think in groups. A receipt supporting the 2026 return should be kept at least as long as the IRS can review that return, and longer for employment tax records and records of property you still own, which can support later depreciation or sale calculations. Check the exact periods in the IRS recordkeeping guidance, and your state's rules for payroll and sales tax records. A simple system: a folder per tax year, a separate 'keep long-term' folder for formation documents, property and loan records, and a yearly purge date. ## Mistakes that cost money Shredding before the period ends. Keeping everything forever so nothing can be found. Scanning without backing up. Forgetting records held by software vendors you may stop paying. ## Check your work Every January, move the prior year to archive and confirm the backup opens. ## Common questions **Can I shred paper receipts after scanning?** Generally yes if the scan is clear and complete, but ask your tax professional, especially for large purchases. **Where should I keep digital records?** In a secure, backed-up cloud folder that you own, not only on one computer. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online) More guides - [How to switch accounting software and keep your history](/bookkeeping/guides/how-to-switch-accounting-software) - [Separating personal and business money: why and how](/bookkeeping/guides/separating-personal-and-business-finances) - [What to send your bookkeeper each month: a checklist](/bookkeeping/guides/what-to-send-your-bookkeeper-each-month) - [A monthly bookkeeping close checklist for small businesses](/bookkeeping/guides/monthly-bookkeeping-close-checklist) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Sole Proprietor Tax-Time Organizer Gather everything your tax preparer will ask for in one place, spot 1099s that do not match your records, and hand over a clean one-page summary. [See what's inside ($24)](/toolkits/sole-proprietor-tax-time-organizer) [Free sample](/toolkits/sole-proprietor-tax-time-organizer#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)