How Long to Keep It
Generally companies keep the current year’s records in filing cabinets in the office. If they have enough space, they may also keep the prior year’s records in a separate filing cabinet or cabinets. Otherwise, older records are in other on-site or off-site storage.
How long you need to keep the records varies by the type of record. If you are keeping the records solely to have what you need for an IRS audit, then you can destroy any records once they are four years old (that includes the current year and three years before that). The IRS has agreed not to go back further than three years to audit an individual or business. Other agencies and auditors have adopted the same policy.
All bets are off, though, if questions of ...