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Business Tax Disposal Guide

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How Long to Keep Business Tax Documents?

Every business owner understands the importance of holding onto business tax documents, but these documents should be retained for more than just compliance with IRS rules and regulations. Tax records can also be testimonial evidence in court cases, and serve as financial documentation in case of transitions in accounting firms or legal counsel. Read on for information on the suggested minimum retention period for business tax documents.

Suggested Retention Guide for Business Tax Records

Document Type Suggested Minimum Retention
Audit reports Permanently
Tax returns and worksheets Permanently
Year-end financial statements Permanently
Investment trade confirmations Permanently
IRS agent reports Permanently
Insurance records Permanently
Chart of accounts Permanently
Employee W-2 forms 7 years
Employee W-4 forms 5 years
Internal audit reports 3 years
Sales records 7 years
Employee timesheets 7 years
Payroll withholding statements 7 years

Important note: These recommended guidelines are not a substitute for legal advice; consult your accountant or attorney for the most up to date information.

How to Dispose of Business Tax Records

Proper destruction of old records is just as important as maintaining best practices for document retention. Many businesses choose to contract a dedicated shredding company to assist in the task of completely destroying these sensitive documents before they can pose a risk to the company. The team at PROSHRED® Columbus is standing by to assist you with your information destruction needs any time of the year. Our mobile shredding truck operators can come to your location and shred all of your documents on site without ever making physical contact with the papers, so you know you have received the most secure service possible.

Tax Records

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