Contractors ask me this every year:“George, how long do I actually need to keep tax records?”

Here’s the real answer — no fluff 👇

• The basics:• IRS standard audit window: 3 years• If income is underreported by 25%+: 6 years
• Contractor rule of thumb: keep tax returns + support for 6 years

Some records must be kept longer:

🏗 Property & buildingsKeep until sold + 3 years(Improvement records reduce taxes when you sell)

🚜 Equipment & vehiclesKeep while owned + 3 years after sale

💸 Bad debts / unpaid jobsKeep up to 7 years

🏦 IRAs & retirement accountsKeep until emptied + 3 years

Important contractor notes:• If you deduct it, you need proof• Digital records are fine• Deleting old bank/QB files too early causes audit problems

Bottom line:Storage is cheap.IRS disputes are not.

If you’re unsure whether to shred something — don’t.Or ask your CPA first.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.