Here are some guidelines to help you decide what to hang on to and what to throw out. Keep the following records for the amount of time indicated:

Permanently

• Federal and state income tax returns and proof of their mailing, including all documents that you sent to the IRS when you filed, W-2s and records of securities purchased.
• Sales and purchase agreements for capital items, such as land, buildings and equipment.

7 Years

• Cancelled checks, deposit statements and receipts. Records for transactions that have an impact on a particular year, such as receipts for itemized deductions or interest income.

6 Years

• IRA and other retirement plan documents, including plan statements and cancelled checks, withholding statements and annual tax reports.
• IRA and retirement plan contributions. That includes statements and records of contributions. You need to support their tax-exempt status upon withdrawal.

3 Years

• Information needed to prepare tax returns, such as records of sales receipts and operating expenses.
• Receipts of escrow statements, including purchases and sales.
• Car and truck expense documents for your business
• Meal, entertainment and travel receipts for your business, too.

Excerpt from T. Rowe Price Investor, September 2001 and IRS Publication 552, What Records to Keep During Tax Time at www.irs.ustreas.gov.

Farm Credit can help
For more information, contact us at info@yankeeaca.com today! Our tax specialists are ready to answer your questions or prepare your business or personal returns for you.

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