How long should I keep tax records?
Kay Honey, CPA  Special to The Oak Ridger  During COVID-19 isolation months, people apparently cleaned out old files. As they did, however, many raised questions about how long to keep records. I asked my CPA friend Kay Honey to provide a definitive answer about how long to hang on to statements and records. ***  I get the same record retention question often. I generally just say seven years, but this is a more thorough explanation. In general, you should keep your tax returns and supporting documents until the statute of limitations for that return runs out. For most taxpayers, that would be three years from the date the original return was filed (or the due date of the return, if filed before the actual due date). Tax records should be kept for seven years if you have losses that were carried forward, such as worthless securities or bad debt deductions. Tax records for property, depreciable assets, or other capital assets should be kept until the statute of limitations expires for the year in which the property is disposed. Keep in mind that there is no statute of limitations if you do not file a return or if you file a fraudulent return. As a side note, I keep client records through Oct.15 of the seventh year following the filing date.