How long should you keep receipts? For many 2025 and 2026 federal returns, the common IRS timeframes are 3 years for most filed returns, 6 years if income was underreported by more than 25%, and 7 years for bad debt or worthless securities claims. Employment-tax records often follow a 4-year rule. If you want the conservative one-line answer, many accountants suggest keeping supporting records for 7 years. Verify your situation with the IRS or a CPA.
IRS Receipt Retention Guidelines
| Situation | Retention Period | Why |
|---|---|---|
| Standard tax return filed | 3 years | IRS statute of limitations |
| Underreported income by >25% | 6 years | Extended statute |
| Worthless securities or bad debt | 7 years | Longest standard period |
| Did not file a return | Indefinitely | No statute of limitations |
| Property records | Until disposition + 3 years | Basis and gain/loss |
Why 7 Years Is the Safe Standard
Many accountants use 7 years as a practical default because it covers the longest common federal retention period and gives extra margin beyond the 6-year rule. State tax agencies may use different timelines, so business owners and multi-state filers should double-check local rules.
Sources to review: IRS "How long should I keep records?" and Publication 583 are good starting points for the 3-year, 6-year, 7-year, and 4-year federal timelines. Scan receipts early because thermal paper can fade quickly.
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