Record how long a business tax record is kept
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- For each record, note the year of the return, whether income may have been omitted, whether the record supports a worthless-security or bad-debt claim, and whether it is an employment-tax record. Do not stamp a flat five-year date on every document.
- What the lawyer must review
- The IRS page says records that support an item of income, deduction, or credit are kept until the period of limitations for that return runs out. The general period on that page is 3 years if the longer situations do not apply. It is 6 years if the return omits income that should have been reported and the omission is more than 25 percent of the gross income shown. It is 7 years for a claim for a loss from worthless securities or a bad-debt deduction. Employment-tax records are kept at least 4 years after the date the tax becomes due or is paid, whichever is later. Records are kept indefinitely if no return is filed or if a fraudulent return is filed. 26 U.S.C. § 6501 states the general assessment rule that matches the 3-year record period: the tax shall be assessed within 3 years after the return was filed.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Review the original source set for relevant material absent from the output, including contrary evidence, qualifications and remaining gaps.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.