How long to keep invoices and business records
The IRS says to keep records that support your income and deductions until the period of limitations for the tax return expires. The right period depends on your situation.
IRS periods of limitation
| Situation | Keep records for |
|---|---|
| Most returns | 3 years from the date you filed (or the due date, if later) |
| You did not report income that is more than 25% of the gross income on your return | 6 years |
| You filed a claim for a loss from worthless securities or a bad debt deduction | 7 years |
| Employment tax records | At least 4 years after the tax is due or paid |
| You did not file a return, or filed a fraudulent return | Indefinitely |
What many advisors recommend
Because situations change, many accountants advise keeping invoices and supporting records for at least 7 years. Keep property and equipment records for as long as you own the asset, plus the limitation period for the year you sell it. State sales tax authorities have their own retention rules, often three to four years or more; check your state.
What to keep
- A copy of every invoice exactly as you sent it (the PDF), not just the numbers.
- Credit memos, deposit invoices and proof of payment.
- Customers’ exemption and resale certificates (see invoicing a tax-exempt customer).
- Receipts and statements for expenses.
- A backup in a second place, such as a cloud folder or an external drive.
With Invoice Studio
Your data lives only in your browser, so use the “Data backup” button regularly and save the PDFs you send in your own folder structure.
Frequently asked questions
How long should I keep invoices for taxes?
At least until the period of limitations for the return expires: generally 3 years, up to 6 or 7 in some cases. Many advisors recommend 7.
Do I need to keep paper copies?
Digital copies are generally acceptable as long as they are legible, complete and can be produced when asked.
How long do I keep employment tax records?
At least 4 years after the tax becomes due or is paid, whichever is later.
Related
- What an invoice needsWhat to include on an invoice (U.S. checklist)
- Tax-exempt customersHow to invoice a tax-exempt customer
- Federal “proper invoice”Invoicing the federal government: what is a “proper invoice”?
- Step-by-step guideHow to create an invoice in 10 steps
This page is general information as of October 2026. Rules differ by state and industry; check your situation with a tax professional or your state’s revenue department.