Key takeaways
- The general IRS rule is three years from filing. It’s six years if you underreport income by more than 25%, and seven years for bad debt or worthless securities. See How long should I keep records?
- Keep employment tax records for at least four years after the tax is due or paid, whichever is later.
- Keep records for assets until the period runs out for the year you sell or dispose of them.
- Scanned records are fine if they’re accurate, legible and retrievable, per Publication 583.
What is record retention?
Record retention answers two questions every business owner asks sooner or later: how long do I have to keep this, and can I throw the paper away? For tax purposes, the answer depends on the period of limitations, the window the IRS has to review your return or that you have to amend it. While that window is open, you need records that prove every number on the return.
A retention habit also protects you outside of tax. Lenders, insurers, landlords and your own future self all ask for old records more often than you’d expect.
Store receipts safely for as long as you need to keep them with the Manage Receipt app.
How long to keep receipts
These periods come from the IRS. They run from the date you filed the return (a return filed early counts as filed on the due date).
| Situation | Keep records for |
|---|---|
| Normal case: all income reported, no special issues | 3 years |
| You file a claim for a credit or refund after filing | 3 years from filing or 2 years from paying the tax, whichever is later |
| You left out income worth more than 25% of the gross income on the return | 6 years |
| You deduct a bad debt or worthless securities | 7 years |
| Employment tax records (payroll) | At least 4 years after the tax is due or paid, whichever is later |
| Property and equipment you own | Until the period runs out for the year you sell or dispose of it |
| You didn’t file, or filed a fraudulent return | Indefinitely |
The simple habit: keep every business receipt for seven years. That covers nearly every case, and with digital storage it costs nothing extra.
Which documents to keep
- Receipts and invoices for every business expense
- Bank and card statements
- Income records: invoices you sent, sales records, 1099 forms
- Mileage logs and travel records with dates and business purpose
- Purchase records for equipment, vehicles and other assets
- Payroll and employment tax records, if you have employees
- Home office bills, if you claim the deduction
- Copies of your filed tax returns
A receipt alone isn’t always enough. For meals, travel and gifts, also keep the business purpose and who was involved. See substantiation for what each record has to show.
Digital storage rules
You don’t need to keep a box of paper. The IRS accepts electronic records under Revenue Procedure 97-22, as long as the system can store, preserve, retrieve and reproduce them in legible form, and gives a complete and accurate record. Once your scans meet that standard, you can generally destroy the paper originals.
- Legible. Every detail on the original must be readable: vendor, date, items, amount.
- Complete. Scan the whole receipt, including any notes you wrote on the back.
- Findable. Name or tag files so you can pull one up by date, vendor or amount.
- Backed up. Keep a copy somewhere other than one phone or laptop.
Scanning also solves the thermal paper problem. Most register receipts fade within months or a few years, long before a seven-year window closes. A digital receipt or clear scan stays readable.
When it’s safe to shred
- Find the filing dateStart from when you filed the return the records support.
- Check special casesBad debts, big income gaps or assets you still own mean keep longer.
- Check other needsInsurers, lenders and your state may want records longer than the IRS does.
- Shred securelyUse a cross-cut shredder and delete old digital copies on purpose, not by accident.
State tax agencies can have their own review periods, which are sometimes longer than the federal one. When in doubt, keep it: a digital file costs nothing, and a missing one can cost a deduction.
Seven years of receipts, no boxes
Doc Wallet in Manage Receipt keeps scanned receipts, hotel folios and tax documents in one secure place, with the vendor, date and total already pulled out at scan time. Clear digital copies don’t fade like thermal paper, so a receipt from 2026 is still readable when someone asks for it years later.
Explore Doc WalletFrequently asked questions
How long should I keep receipts for taxes?
At least three years after you file the return they support, which is the general IRS period. Keep them six years if you underreported income by more than 25%, seven years for bad debt or worthless securities, and indefinitely if you didn’t file. Keeping business receipts for seven years covers almost every case.
Can I keep receipts digitally only?
Yes. The IRS accepts electronic records if they are accurate, complete, legible and easy to retrieve. Once your scans meet that standard, you can generally discard the paper. Make sure every detail is readable, include any notes on the back, and back up the files in a second location.
How long should I keep business records?
Keep most business records at least three years, employment tax records at least four years, and asset records until the period runs out for the year you sell the asset. Many owners keep everything for seven years. Check with your insurer, lender and state before shredding.
How long should I keep receipts for equipment?
Keep them for as long as you own the item, plus the normal three-year period after you file the return for the year you sell or dispose of it. You need them to support depreciation and to figure any gain or loss when you sell.