How long to keep tax records

The IRS generally has three years after you file to audit a return, so that's the minimum for most tax records. Some situations call for longer, and many people keep the returns themselves for good.

IRS guidance, in short

• 3 years after filing: the general rule for returns and supporting documents
• 6 years: if you didn't report income that should have been reported and it was more than 25% of the income shown
• 7 years: if you claimed a loss from worthless securities or a bad debt deduction
• Indefinitely: if you didn't file a return or filed a fraudulent one

What counts as a supporting document

• W-2s, 1099s and other income forms
• Receipts and records for deductions and credits
• Records of retirement account contributions
• Records showing what you paid for property and investments (keep these longer; see home records)

A simple approach

Keep each year's return and its supporting papers together in one folder or file. After seven years, shred the supporting papers and keep the return itself. You can also get past returns' transcripts from the IRS.

General information. See IRS.gov, "How long should I keep records", or ask a tax professional. Dime Keepers isn't paid by any storage, shredding, safe or cloud company.