How long to keep business records (US federal rules, with sources)
Short answer
Most federal periods run 1 to 7 years: IRS records generally 3 years from filing (6 or 7 in some cases), employment tax records at least 4 years, payroll records 3 years, time cards 2 years, I-9s 3 years after hire or 1 year after employment ends (whichever is later), OSHA injury logs 5 years. State law and your industry can add more. Once a period ends, the records can go, though the working archive may be worth licensing first.
This is a plain-language overview, not legal or tax advice. Rules change and state law often adds to them. Check with your accountant or lawyer before you destroy anything.
The main federal periods
| Record | Keep for | Source |
|---|---|---|
| Records supporting a tax return | 3 years from filing (a return filed early counts as filed on the due date) | IRS |
| ...if income was underreported by more than 25% | 6 years | IRS, same page |
| ...if you claimed a loss from worthless securities or a bad debt deduction | 7 years | IRS, same page |
| ...if you didn't file a return | Indefinitely | IRS, same page |
| Employment tax records | At least 4 years after the tax was due or paid, whichever is later | IRS, same page |
| Payroll records, employment contracts and plans, sales and purchase records (FLSA) | At least 3 years | 29 CFR 516.5 |
| Time cards and wage rate tables (FLSA) | At least 2 years | 29 CFR 516.6 |
| Personnel and hiring records (EEOC) | 1 year from the record or the personnel action, whichever is later; 1 year from termination for a terminated employee | 29 CFR 1602.14 |
| Form I-9 | 3 years after hire or 1 year after employment ends, whichever is later | USCIS |
| OSHA 300 log, annual summary, 301 incident reports | 5 years after the end of the calendar year they cover | 29 CFR 1904.33 |
Three things that override the table
- A dispute. Once a discrimination charge is filed, the employer has to keep all relevant personnel records until it's resolved (29 CFR 1602.14). More broadly, when a lawsuit, audit or investigation is pending or reasonably expected, keep everything relevant. Talk to your lawyer.
- Your industry. Trucking, freight brokerage, construction, engineering and regulated manufacturing have their own rules. See Trucking and freight broker record retention.
- Your state. Many states set their own periods for payroll, tax and employee records, and some are longer than the federal ones.
When a period ends
Destroy personal information securely. Under the FTC Disposal Rule, anyone who holds consumer report information for a business purpose must take reasonable measures when disposing of it, such as shredding or burning paper and destroying or erasing electronic media (16 CFR 682.3).
Before the rest goes
Most of what a firm has isn't covered by any of these rules: quotes, estimates, orders, drawings, work orders, project files. There's usually no duty to keep them, and they get thrown away. But that working archive is exactly what AI developers license from owner-led firms. Before it's deleted, it may be worth a check. See What kinds of business records do AI companies license?
Quick questions
How long should a business keep tax records?
The IRS says generally 3 years from when you filed the return. It's 6 years if you underreported income by more than 25% of the gross income shown, 7 years for a claim for a loss from worthless securities or a bad debt deduction, and indefinitely if you didn't file.
How long do I keep payroll and employment tax records?
Employment tax records at least 4 years after the tax was due or paid, whichever is later (IRS). Payroll records under the Fair Labor Standards Act 3 years, and time cards 2 years.
How long do I keep a former employee's I-9?
Three years after the date of hire, or one year after employment ends, whichever is later.
Can I throw records away once the period is over?
Generally yes, unless a lawsuit, audit or investigation is pending or likely, or state or industry rules require longer. Destroy personal information securely.
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