| Type of Record | Retention Period |
Tax and legal correspondence | 7 years after liquidation of entity |
Audit reports | 7 years after liquidation of entity |
General ledger and journals | 7 years after liquidation of entity |
Financial Statements | 7 years after liquidation of entity |
Contracts and leases | 7 years after liquidation of entity |
Real estate records | 7 years after liquidation of entity |
Corporate stock records and minutes | 7 years after liquidation of entity |
Bank statements and deposit slips | 6 years |
Sales Records and Journals | 6 years |
Other records relating to revenue | 6 years |
Employee expense reports and records
relating to travel and entertainment expenses | 7 years after liquidation of entity |
Canceled checks | 3 years |
Paid vendor invoices | 3 years |
Employee payroll expense records | 3 years |
Inventory records | 3 years (longer if you use LIFO) |
Depreciation schedules | At least tax life of asset plus 3 years |
Other capital asset records | At least tax life of asset plus 3 years |
Other records relating to expenses | 3 years |
Partnership agreement and amendments | Permanently |
Operating agreement and amendments(LLC) | Permanently |
Taxpayers retaining records using paperless alternatives should refer to the following revenue procedures to ensure that records are acceptable to the IRS. Rev. Oroc. 81-46 addresses retaining books and records on microfilm or microfiche (micrography technology). Rev. Proc. 97-22 updates the procedures in Rev. Proc. 81-46 for the advances in retaining records via electronic storage media such as magnetic tape, optical disk, CD-ROM, etc. Rev. Proc. 98-25 provides guidance on retention of automated data process (ADP) files or machine sensible records.
Accounting and Auditing
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