Record Retention Guidelines for Corporations & Individuals
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Record Retention for Individuals and Businesses
Proper record retention is essential for both individuals and businesses, but it can be challenging to determine exactly which records to keep and for how long to keep them. Poor accounting records retention can lead to the loss of crucial data and information, legal trouble, and succession planning problems, among other issues.
To help simplify the process of record retention, DMJPS has prepared this essential guide that answers the question – what to keep and for how long?
For additional information about accounting record retention, please speak wit
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Accounting Records | |
| Accountant’s reports | Permanently |
| Bank statements, deposit slips | 5 years |
| Cash receipt books or vouchers | 7 years |
| Checks (payroll and general) | 7 years |
| Check registers | 7 years |
| Daily logs (journals of receipts and charges) | 7 years |
| Expense reports | 7 years |
| Financial statements (year-end) | Permanently |
| General ledgers and journals | Permanently |
| Internal audit reports | 4 years |
| Payment vouchers | 7 years |
| Petty cash vouchers | 4 years |
| Uncollectible accounts | 4 years |
Corporation Capital Records | |
| Capital stock, bond and proxy records | Permanently |
| Deeds and easements | Permanently |
| Dividends paid | Permanently |
| Expired mortgages, notes, and leases | 8 years |
| General and labor contracts | Permanently |
| Minute books for Directors and/or Stockholders | Permanently |
| Bylaws and Charter | Permanently |
| Stock redemptions | Permanently |
Correspondence | |
| General correspondence | 4 years |
| Legal and tax matters | Permanently |
Employee Records | |
| Employee I-9 forms* | 4 years |
| Employee personnel records (after termination) | 4 years |
| Employment applications for non hires | 4 years |
| OSHA medical records* | 30 years plus term of employment |
| OSHA training records | 4 years from training date |
| Policy manual (after revision) | 6 years |
| Vacations and other absences | 4 years |
Insurance | |
| Accident and fire inspection reports | 7 years |
| Claims after settlement | 7 years |
| Expired policies | 7 years |
| Group disability records | 7 years |
| Malpractice insurance policies | 6 years |
Personal Records | |
| Bank statements | 7 years |
| Birth certificates | Permanently |
| Canceled checks (generally) | 7 years |
| Cancelled checks (for important payments, i.e. taxes, purchases of property, special contracts, etc. ) | Permanently |
| Closing statements, purchase and sales invoices, proof of payment insurance records and Form 2119 | 7 years |
| Contracts, mortgages, notes, leases (Expired) | 7 years |
| Contracts, mortgages, notes, leases (still in effect) | Permanently |
| Correspondence (legal and important matters) | Permanently |
| Credit card statements | 7 years |
| Custody agreements | Permanently |
| Death certificates | Permanently |
| Deeds, mortgages, bills of sale | Permanently |
| Divorce papers | Permanently |
| Employment taxes for household employees (records and returns) | Permanently |
| Form K-1 from partnerships, trusts and S corporations | 7 years |
| Home and home improvements | Permanently |
| Investment records: Option records (expired) Stock and Bond certificates (canceled) | 7 years |
| Insurance records, open or unresolved accident reports, claims, policies, etc. | Permanently |
| IRA contributions (all) | Permanently |
| Investment records: Brokerage statements, mutual fund statements and Form(s) 1099 | Permanently |
| Marriage certificate | Permanently |
| Property appraisals by outside appraisers – Retirement and pension records, including Form(s) 1099 | Permanently |
| Tax returns, forms W-2 and worksheets IRA contributions (all) revenue agents report and other- Investment records: documents relating to determination of Brokerage statements, mutual fund income tax liability | 7 years |
Purchasing, Sales and Receiving | |
| Inventory records | 7 years |
| Purchase orders and requisitions | 4 years |
| Sales contracts and invoices | 4 years |
Tax Records | |
| Depreciation schedules | Permanently |
| Excise tax returns and supporting info | Permanently |
| Income tax returns and supporting info | Permanently |
* Age of majority is 18 years of age in North Carolina. The statutes run for three years past majority.
* OSHA medical records and I-9 forms should be kept separate from employee’s personnel file.
In order to preserve confidentiality when discarding old records, all documents should be destroyed. This guide is for original records.
Computerized Record Retention
Records must be maintained in a retrievable format according to these time guidelines. Additionally, documentation describing the application, procedures, and controls utilized, as well as the detailed information for the records, must be available.
Loss or Destruction of Records
To safeguard your records against loss from theft, fire, or other disaster, you should consider keeping your most important records in a safe deposit box or other safe place outside your home. In addition, consider keeping copies of the most important records in a single, easily-accessible location, so that you can grab them quickly if you have to leave your home in an emergency.
North Carolina Escheats and Abandoned Property Law
Unclaimed tangible and intangible property must be forwarded to the state. Dormancy periods could be as long as 15 years, but most are 1-5 years depending upon the nature of the property.
Disclaimer
This page and the guidelines within it are intended to provide accurate and factual information about record retention. These general guidelines are based on information from the Internal Revenue Service and other federal and state agencies, as well as the rules followed by many businesses. These are only general guidelines for accounting records retention; therefore, judgment must be used when conducting your own accounting records retention. We recommend that voluminous and bulky business records be destroyed as soon as they have outlived their usefulness, usually after 4 years.
DMJPS PLLC, its employees, and staff make no representation of guarantee or warranty, expressly or implied, that this compilation is error-free or that the use of this directory will prevent differences of opinion or disputes. We assume no liability whatsoever in connection with its use. The contents of this publication may be subject to change.
Consult With DMJPS to Develop the Right Accounting Record Retention Plan
Our record retention guidelines provide a general idea about the most common personal and corporate record retention periods. But every individual and business has unique record-keeping requirements. To develop an appropriate accounting records retention plan for your individual or business needs, you must consult with tax advisors.
Contact us now to learn how DMJPS’ tax accounting consultants can help you develop the right record retention plan for your needs.