With summer just around the corner, spring cleaning is on everyone’s mind, and that includes your filing cabinet. Once tax season wraps up, one of the most frequent questions we get is: “Can I finally throw this away?” Great question. The answer depends on your situation, but we’ve got you covered. Here’s a practical guide to tax retention, along with a few tips to keep that information safe.
How Long Should You Keep Your Tax Records?
The IRS uses something called the period of limitations, the window during which you can file an amended return to claim a credit or refund, or during which the IRS can assess additional taxes. Your records need to be kept until that window closes. Here’s how that breaks down:
- Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
- Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
- Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
- Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
- Keep records indefinitely if you do not file a return.
- Keep records indefinitely if you file a fraudulent return.
- Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
- Gift Tax Filings – Indefinitely (Recommended): Gift tax returns are crucial for establishing the lifetime exemption amount used. If gifts are not adequately disclosed or if the form is never filed, the statute of limitations never expires, allowing the IRS to review the gift at any time.
What About Records Connected to Property?
Property records follow a different rule. If you own real estate, including your primary residence, keep all related documentation until the period of limitations expires for the year you sell or dispose of it. This includes purchase records, improvement costs, depreciation schedules, and anything else you’d need to calculate gain or loss on a future sale. Check with your insurance company, mortgage lender, or other creditors, as they may require retention beyond what the IRS does.
Protecting the Records You’re Keeping.
Tax records contain some of the most sensitive personal and financial information you have, such as Social Security numbers, income details, and account information. That makes them a prime target. As you organize your files this season, it’s a good time to make sure your information is also protected.
A few practical steps:
- Shred, don’t toss: Any document with personal or financial information should be cross-cut shredded before disposal, not simply thrown away.
- Store securely: Keep physical records in a locked location. For digital records, use strong, unique passwords and enable two-factor authentication on any accounts where documents are stored.
- Monitor your credit: Pull your free annual report at annualcreditreport.com and review it every six months for any unauthorized activity.
- Stay alert to tax-related fraud: If you suspect your tax information has been compromised, visit the IRS Taxpayer Guide to Identity Theft at irs.gov, or call the SSA fraud hotline at 800-269-0271 if your Social Security number may be involved.
- If you suspect fraud has already occurred, act quickly: contact your financial institution, file a police report, and place a fraud alert and credit freeze with all three major credit bureaus.
- The IRS initiates contact by mail, not by phone, email, or text. If you receive an unsolicited call, email, or text message from someone claiming to be the IRS, do not respond or share any personal information; it is likely a scam. Report suspicious emails to phishing@irs.gov.
Final Thoughts
Looking ahead, this kind of organization becomes even more meaningful. In many communities, like Westminster College, July and August mark the start of homecoming season. Invitations and RSVPs begin to circulate, especially for milestone reunions. The 50th reunion carries particular significance – not just as a social gathering, but as an opportunity to reflect, reconnect, and give back. Many choose to contribute in honor of their class, their shared experiences, or the institution that shaped them.
Having your records in order makes participating in these moments easier and more intentional. Whether it is locating contact information, reviewing past contributions, or planning a meaningful gift, organization removes friction and allows the focus to remain on connection and legacy.
In that sense, spring cleaning is about preparing for the seasons ahead. By organizing both our physical and financial spaces now, we create room for the events, relationships, and traditions that matter most later in the year.
