Statute of Limitations

The statute for tax examinations is the later of three years from the date the tax return is filed or due. There is no limitation for false returns or failure to file returns. If you leave out more than 25% of gross income, the statute of limitations is six years from the date the return was filed, whichever is later. To comply with these provisions, I usually tell clients to retain support for tax returns for the current year and the three prior years. That would mean at present you should retain your supporting records for 2011 through 2014 tax years. I would keep a copy of the tax returns themselves forever.