Jack Woods


Central Business Solutions 

301 Lynnfield Street, P.O. Box 3169 Peabody, MA 01960


Phone:  978-532-0266

Fax:      978-532-9105


1147 Main Street, Suite 213, P.O. Box 299 Tewksbury, MA 01876


Phone: 978-851-8044

Fax:     978-851-9332


Email: jack@cbps.com

November 2019

Keep Them or Dump Them?

Article Image

How long should you keep your business income tax records?


In most cases, three years should be sufficient, according to the IRS. However, this statute of limitations goes out the window if you don’t report more than 25% of your gross income on a return, file a false return or don’t file at all. You must keep your records indefinitely in the latter two cases.


Keep tax records for three years from the date you filed your original return or two years from the date you paid the tax, whichever is later. If your business owns property, keep your records until the period of limitations expires for the year in which you disposed of the property.

Other terms apply for non-income taxes, such as employment taxes. Work with your tax professional to make sure you follow the rules and keep the records you may need in case Uncle Sam wants more information from you.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.