Record Retention

We frequently receive the question on how long records should be retained. The answer depends on your specific situation and we always recommend being more conservative on document retention. At minimum, we suggest the following:

• Tax Returns & Related Documents – We recommend retaining the tax returns themselves forever. For the documents that support the tax return amounts, we recommend keeping at least seven years’ worth of documentation on hand in the event of potential examination by governmental or regulatory agencies.

• Fixed Asset Invoices – If you are depreciating an asset, you need to keep the purchase information on the asset for as long as the asset appears on your depreciation schedule. These documents would support your basis in the asset in the year of disposal as well.

• If you have employee benefit programs, please consult your specific plan documents (and/or contact your third-party administrator) to insure you retain records in accordance with the documents and maintain compliance within the plan.

Firm Record Retention Policy:

We also frequently receive the question on what information is retained by our office. It is our policy to keep records related to our engagements for 5 years. However, we do not keep any of your original records, so we will return those to you upon the completion of the engagement. When records are returned to you, it is your responsibility to retain and protect the records for possible future use, including potential examination by governmental or regulatory agencies.