How Long Should Records Be Kept?

Dear Client:

Just how long you should keep records is partly a matter of judgment and a combination of state and federal statutes of limitations. Federal income tax returns can be audited for up to three years after filing (six years if underreported income is involved), so all records substantiating tax deductions should be kept at least that long. Here are recommended retention periods for various records:

Records To Be Retained

Retention Period
CORPORATE RECORDS  
bulletCertificate or Articles of Incorporation
 Permanent
bulletCertificates of Permission to do business in a Foreign State
 Permanent
bulletCapital Stock Records
 Permanent
bulletBy-Laws and All Amendments thereto
 Permanent
bulletMinute Books
 Permanent
bulletBond Records
  Permanent
bulletCopy of Notice of Shareholder Meetings
  Permanent
bulletList of Stockholders Entitled to Vote at Meeting
  6 years
LEGAL AND PATENT RECORDS  
bulletAbstracts of Title
 Permanent 
bulletWarranty Deeds 
 Permanent 
bulletConveyances and other Title Papers 
 Permanent 
bulletEasements 
 Permanent 
bulletMortgages 
bulletLeases
bulletContracts
bulletTrust Agreements
 15 years after Termination 
bulletClaims, Evidence and Proof 
bulletCase files, Affidavits, Depositions, etc.
bulletInformation Files, Brief, etc.
 10 years after closing case 
bulletCorrespondence, Other
 15 years 
bulletPatents and patent applications
 Permanent 
bulletAssignment of Patents 
 Permanent 
bulletOptions
bulletLicense Agreements
bulletContracts 
  15 years after termination unless claim pending
bulletTrade-Marks
 Permanent 
bulletCopyrights 
 Permanent 
FINANCIAL ACCOUNTING RECORDS  
bulletAudit Reports  
 Permanent 
bulletYear-end statements and working papers 
 Permanent 
bulletMonthly financial statements 
 10 years 
bulletContracts with Auditors 
 Permanent 
bulletGeneral Ledger , Journals & trial balances
 Life of business plus 7 years
bulletBank statements 
 7 years
bulletBank reconciliation's
 7 years 
bulletCancelled Checks 
 10 years
bulletDeposit slips 
 5 years 
bulletCheck register
 Permanent 
bulletFinance Agreements 
bulletCredit Agreements
 15 years after termination 
bulletRecords of Investments 
 Ownership period plus 7 years 
bulletSafe Deposit Agreement 
 10 years after termination 
bulletAccount receivable detail ledgers 
 10 years 
bulletNote receivable detail ledgers 
 10 years 
bulletSales invoices & journals
 10 years 
bulletNotes receivable
bulletRemittance Advices
 7 years after payment
bulletProperty & Equipment Detail Ledger, including depreciation calculations
 Permanent
bulletSale or Disposals, record of
 20 years
bulletVouchers & Invoices supporting purchases of property & equipment
 15 years
bulletAccount payable detail ledgers
 10 years 
bulletInventory records 
 10 years 
bulletNote payable detail ledgers 
 10 years 
bulletPurchases journal 
 10 years 
bulletNotes Payable - Cancelled or Paid 
 10 years after payment 
bulletVouchers & vendor invoices
 10 years 
bulletPetty Cash Records 
 4 years 
bulletRoyalty Records 
 Permanent 
TAX RETURNS Permanent 
EMPLOYMENT TAX RETURNS  7 years 
EXPENSE REPORTS  7 years 
ENTERTAINMENT RECORDS  7 years 

Make a list of your records and documents and then establish a written schedule for disposing of those you need not keep permanently. If you have any questions about any records or recordkeeping requirements, please call us.

Very truly yours,

KOLITA & COMPANY

Certified Public Accountants

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8300 Tyler Boulevard, Suite 101, Mentor, Ohio 44060
 Phone: 440-205-8299   Fax: 440-974-7674
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