10/27/2015 Should I Keep This or Throw It Away? - Ketel Thorstenson

http://www.ktllp.com/kt-non-profit-articles/item/250-should-i-keep-this-or-throw-it-away??tmpl=component&print=1 1/2

KT NON-PROFIT ARTICLES : SHOULD I KEEP THIS OR THROW IT AWAY?

Should I Keep This or Throw It Away?Written by  Jackie Buczek, Administrative Assistant, Spearfish Office, Ketel Thorstenson, LLPSep 13, 2013 1:43 pm

When it comes to documents, receipts, statements, etc. this can be a difficult question to answer. This is why many of us keepeverything just in case. Unfortunately we end up with boxes or drawers full of papers. If you are at a point where you want orneed to go through many years of saved papers this article hopefully will help you keep what you need and throw away whatyou don't. Unless otherwise stated, you should start counting the years from the extended due date for the tax returnfor the respective years.

To begin lets start with a few documents that most of us commonly keep:

Bank Statements 3 years

Checks (canceled checks for important payments, special contracts, purchase ofassets, payment of taxes, etc. Checks should be filed with the papers pertaining to theunderlying transaction)

Permanently

Checks (canceled except those noted above) 7 years

Correspondence (legal and tax related) Permanently

Deeds, mortgages and bills of sale Permanently

Deposit Slips 3 years

Financial Statements (year-end) Permanently

Insurance Policies (expired) 3 years

Insurance records, accident reports, claims, policies, etc. Permanently

IRA/Keogh plan contributions, rollovers, transfers, distributions Permanently

Tax Returns Permanently

W-2 Forms 7 years

Documents in addition to the list above that you may have if you currently own a business or previously owned a business:

Accident reports/claims (settled cases) 7 years General ledgers, year-end trial balance Permanently

Accounts payable ledgers and schedules 7 years Internal audit reports (miscellaneous) 3 years

Accounts receivalbe ledgers and schedules 8 years Inventory records 7 years

Audit reports Permanently Invoices to customers or from vendors 7 years

Cash books Permanently Petty cash vouchers 3 years

Charts of accounts Permanently Purchase orders 3 years

Contracts and leases (expired) 7 years Receiving sheets 1 year

Depreciation schedules Permanently Safety Records 6 years

Employee personnel records (after termination) 7 years Sales Records 7 years

Employee applications 3 years Subsidiary ledgers 7 years

Expense reports 7 years Time Cards and daily reports 7 years

Minute books of directors, stockholders, bylaws andcharter

Permanently Payroll records, summaries and taxreturns

7 years

Trademark registration, patents, copyrights Permanently Trial balances (Monthly) 3 years

All of the above time frames are intended as a general guideline only. How does going through all of those boxes benefit you?You will have the records you need in case of an IRS audit or other examination and you will have more storage space. Youwill also be helping your loved ones if something were to happen to you. These are all good reasons to pull out those boxes

ABOUT US CAREERS EVENTS & NEWS SERVICES AFFILIATED COMPANIES INDUSTRIES

HOME | CONTACT US SearchSearch...

10/27/2015 Should I Keep This or Throw It Away? - Ketel Thorstenson

http://www.ktllp.com/kt-non-profit-articles/item/250-should-i-keep-this-or-throw-it-away??tmpl=component&print=1 2/2

and get started.

If you have other questions about keeping tax or accounting records that are not on this list, please contact a KetelThorstenson, LLP professional. 123 E. Jackson Blvd., Ste. 2, Spearfish, SD 57783, 605-642-7676.

Ketel Thorstenson, LLPAbout Us | Careers | Events & News | Services | Affiliated Companies | Industries

810 Quincy Street | Rapid City, SD 57701 | Tel (605) 342-5630 | Fax (605) 342-2172123 E. Jackson Boulevard, Suite 2 | Spearfish, SD 57783 | Tel (605) 642-7676 | Fax (605) 642-2616

609 Mt. Rushmore Road | Custer, SD 57730 | (605) 673-3220 | Fax (605) 673-3114603 Main St. | PO Box 608 | Williston, ND 58802 | Tel (701) 774-3836 | Fax (701) 774-0672

Website: www.ktllp.com • Email: info@ktllp.com

 Disclaimer | Privacy Policy | Site Map

© Copyright 2013 Ketel Thorstenson, LLP. All rights reserved.