This is a question we hear often. For the vast majority of our clients, they will want to keep the past three years of tax returns. There are some special situations where it can make sense to hold onto them longer, but they won’t apply to most.
Below is great article from Forbes on the topic, I’m quoting part of the article here:
Period of Limitations that apply to income tax returns via the IRS website
1. Keep records for three years if situations (4), (5), and (6) below do not apply to you.
2. Keep records for three years from the date you filed your original return or two 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.
3. Keep records for seven years if you file a claim for a loss from worthless securities or bad debt deduction.
4. Keep records for six 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.
5. Keep records indefinitely if you do not file a return.
6. Keep records indefinitely if you file a fraudulent return.
7. Keep employment tax records for at least four years after the date that the tax becomes due or is paid, whichever is later.
Here is the link to the full Forbes article: WEBSITE LINK