I need to know the length of time I need to keep records for Federal
Income tax purposes.  Answer should apply to (A)  the tax return
itself (Form 1040) "U.S.Individual Income Tax Return" and the back up
documents that support the deductions. (B) I need the same information
for a Form 1120S "U.S.Income Tax Return for an S Corporation"

Hello renoir-ga,

I should emphasize the disclaimer at the bottom of this page, which
states that answers and comments on Google Answers are general
information, and not intended to substitute for informed professional
tax or legal advice.

Apparently this question is asked of the IRS a fair amount.  On its
FAQ, the IRS states as follows:

"How long do I need to keep certain records? 

Records such as receipts, canceled checks, and other documents that
prove an item of income or a deduction appearing on your return should
be kept at least until the statute of limitations expires for that
return.  Usually this is three years from the date the return was due
or filed, or two years from the date the tax was paid, whichever is
later. There is no period of limitations when a return is false or
fraudulent or when no return is filed.  You should keep some records
indefinitely, such as property records, since you may need them to
prove the amount of gain or loss if the property is sold.  For more
details, refer to Publication 552 (PDF), Recordkeeping for
Individuals, or Tax Topic 305 on Recordkeeping.

If you are an employer, you must keep all your employment tax records
for at least four years after the tax is due or paid, whichever is
later. For additional information, refer to Publication 583 (PDF),
Starting a Business and Keeping Records.  People in business often
have expenses for travel, entertainment, and gifts.  The documentation
you should keep for each of these expenses can be found in Publication
463 (PDF), Travel, Entertainment, Gift and Car Expenses."

"Frequently Asked Questions" [scroll to middle of page]
Internal Revenue Service
http://www.irs.gov/faqs/page/0,,id%3D15889,00.html

The response to that question includes links to the tax topic and
publications mentioned.  Especially worth noting are Tax Topic 305 -
Recordkeeping; page 6 of Publication 552: Recordkeeping for
Individuals; and pages 14 and 15 of Publication 583: Starting a
Business and Keeping Records.  These pages all address the issue of
how long to keep records.  (Note: The presence of a paragraph on S
corporations on page 3 of Publication 583 appears to suggest that this
publication applies generally to S corporations.)  The charts on these
pages of the publications indicate that the length of time to keep
records depends on your situation.

"Topic 305 - Recordkeeping"
Internal Revenue Service
http://www.irs.gov/taxtopics/page/0,,id%3D16177,00.html

"Publication 552: Recordkeeping for Individuals" (Revised October
1999)
Internal Revenue Service
http://www.irs.gov/pub/irs-pdf/p552.pdf

I hope that this information is useful for you.

- justaskscott-ga


Search strategy:

Searched IRS site for:

recordkeeping

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Request for Answer Clarification by renoir-ga on 20 Oct 2003 19:07 PDT

justaskscott:  Thanks for the rapid reply.  Do the same requirements
re length of time to retain records apply for "Individual" returns and
for "Sub-S" returns.  Thx.

---

Clarification of Answer by justaskscott-ga on 20 Oct 2003 21:03 PDT

I omitted a link to the publication relating to business records:

"Publication 583: Starting a Business and Keeping Records" (Rev. May
2002)
Internal Revenue Service
http://www.irs.gov/pub/irs-pdf/p583.pdf

The chart on page 15 of Publication 583 contains mostly the same
information as the chart on page 6 of Publication 552.  So it does
appear that basically, the requirments for length of time are the same
for individuals and S Corporations.  If the S Corporation is an
employer, Publication 583 (as well as the FAQ and Tax Topic 305)
indicate that employment tax records must be kept for four years. 
(Again, this is not professional advice, but just what this research
appears to indicate.)

Hello, justaskscott:  Great answers and very rapid reply and good
clarification.  P.S. Your ID name is also great!!!