I want to clean out my old files and want to know how many years I should keep tax records? I use the long form, work for wages and own rental property.
The Internal Revenue Service can audit a personal income tax return up to three years after the return is filed. It has a longer period to audit the return if there was a substantial understatement of income or overstatement of deductions, six years.
Generally and for other reasons as well as a potential audit, tax returns and contracts should be kept permanently.