Utah State Tax Commission

Record Keeping Workshop

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General

By law, you are required to keep your tax records for as long as they are needed for administration of the Internal Revenue Code and Utah Code. This means you must also keep the documents supporting the income and deductions shown on you tax returns until the statute of limitations for the return expires.

The Internal Revenue Service and State Tax Commission have three years from the date you filed your return to assess any additional taxes you owe. If you did not report all of your income and it is more than 25% of the gross income you reported on your return, the IRS has six years from the filing date of the return to assess additional taxes.

If you failed to file a return or filed a fraudulent return, there is no statute of limitations preventing the assessment of additional taxes.

You have three years from the date your filed your return or two years from the date you paid the tax, whichever is later, to file a claim for credit or refund. If you filed your return prior to the due date, it is considered filed on the due date. For example: you filed your individual income tax return on March 10, the filed date for the statute is April 15.

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Retention Schedules

The following retention periods are general rules or guides for determining how long to maintain important business and tax records. The lists are representative of types of records companies may be required to keep. The lists are not all inclusive and your business needs may require other records such as advertising, manufacturing, sales and marketing,and transportation and shipping. If you have a tax or business advisor, you might want to have the advisor review your records retention practices.

Legend: "P" means permanent

Accounting and Fiscal

Type of Document	Years	Type of Document	Years
Accounts payable ledgers	7	Checks paid and cancelled	9
Accounts receivable ledgers	10	Checks, payroll	7
Balance sheets	5	Donations	7
Bank deposit records	6	Expense reports, employees	7
Bank reconciliations	8	Financial statements	P
Bills, collectible	7	Fixed capital records	P
Bonds, sales or transfers	15	General journal, ledger and supporting papers	P
Bonds, registered	P	Income tax returns	4*
Building permits	20	Inventory records	3
Capital stock sales, certificates and ledgers	P	Invoices to customers	7
Cash books	P	Invoices from sellers (vendors)	7
Cash receipts and disbursement records	10	Payroll register	7
Cash sales slips	3	Petty cash records	3
Charge slips	10	Profit and loss statements	P
Check records	7	Buy/sell stocks, bonds and mutual funds (also record of dividends, splits and reinvested dividends)	4**
Check register, dividend, expense	10

*Retain for at least four years and preferably seven if space is not critical. Once the period has elapsed, the supporting documents may be discarded, but the returns and W-2s should be retained indefinitely.

**Retain for four years after the asset is sold.

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Corporate

Type of Document	Years	Type of Document	Years
Annual reports	P	Easements	P
Capital stock certificates and stock ledger	P	Election ballots	20
Charters, constitution, bylaws and amendments	P	Election records	10
Contracts, employee (years after termination)	6	General cashbooks, treasurer and auditor	25
Contracts, government and labor unions (years after termination)	6	Incorporation records and certificates	P
Contracts, vendor (years after termination)	6	Licenses and permits to do business (federal, state and local)	P
Dividend checks	10	Retirement plan contributions (after assets have been withdrawn)	4
Dividend register	P	Stock, stock transfers and stockholder records	4

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Insurance

Type of Document	Years	Type of Document	Years
Accident reports	12	Claims, group life and hospital	4
Appraisals	P	Claims, workers compensation	10
Claims, vehicle	10	Expired policies, all types (years after expiration)	3

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Legal

Type of Document	Years	Type of Document	Years
Affidavits	10	Copyrights	P
Claims, litigation, breach of contract	P	Mortgages	P

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Personnel

Type of Document	Years	Type of Document	Years
Accident reports, injury claims, settlements	7	Injury frequency charts	10
Applications, changes, terminations	3	Insurance records, group and employee	6
Attendance and time sheet records	5	Medical folders, employee	P
Disability and sick benefits records	4	Payroll records after termination	P
Earnings records	P	Pension plan applications, claims and correspondence	P
Employee service records	P	Salary and rate changes	10
Employee contracts	7	Performance records	7
File for individual employee	3	Withholding exemption certificate	3
Garnishments	7	Workers compensation reports	11

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Property

Type of Document	Years	Type of Document	Years
Appraisals	P	Maintenance and repair of buildings	10
Damage reports	7	Maintenance and repair of machinery	7
Deeds and titles	P	Equipment records	P
Depreciation schedules	P	Sales	7
Inventory records	16	Taxes	P
Leases	P	Water rights	P

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Taxation

Type of Document	Years	Type of Document	Years
Annuity or deferred payments plan	P	Invoices to customers and from sellers (vendors)	7
Correspondence	20	Inventory reports	16
Depreciation schedules*	7	Real estate	15
Dividend register	P	Sales and use tax records	P
Employee withholding certificates	8	Social security	P
Exemption status	P	Tax bill statements	P
Excise reports	5	Tax returns and working papers	P

*For any rental real estate or depreciable business property you own, keep records of the property's cost, date acquired, and schedule of depreciation claimed in previous years. If the property is sold, keep the records for four years after the sale.

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