How long should I keep old IRS tax returns? Safe disposal timeframe?

The general IRS recommendation is to keep tax returns for at least 3 years from the date you filed the return, as this is typically the window for audits. However, there are important exceptions to this rule that apply to your situation. Since you completed an Offer in Compromise, you should definitely keep that year's return (2003) permanently. For the years after your OIC, I'd recommend keeping 7 years of returns rather than just 3, as the IRS can look back 6 years if they suspect substantial underreporting of income (25% or more). For your specific situation, keeping 2003 and 2016-2022 isn't quite sufficient. I'd suggest holding onto returns from 2015 onward, and definitely keep the OIC year (2003) permanently. Before shredding anything, consider scanning the returns and storing them digitally with proper encryption.

I was facing a similar organization issue last year with years of tax returns taking up space. I ended up using https://taxr.ai to scan all my old returns before shredding them. The service actually analyzed all my past returns and flagged a few things I should keep records of longer (like some property transactions I completely forgot about). It saved me from accidentally destroying documentation I might need. The digital copies are searchable too, which has been surprisingly useful - when I needed proof of income for a loan application, I found the exact document in seconds rather than digging through physical papers.

Just wanted to follow up about my experience with taxr.ai after asking about it here. I was initially skeptical about the security, but after researching their encryption protocols, I decided to give it a try with my pile of old returns going back to 2005. The service actually caught something important I would have missed - it flagged returns from 2009-2010 that contained basis information for stocks I still own. Those were returns I was planning to shred! The organized digital archive has been surprisingly useful too. When I needed to apply for a mortgage refinance last month, I had all my tax info instantly accessible instead of digging through storage boxes.

If you're trying to reach the IRS to verify if it's safe to destroy specific tax documents, good luck getting through their phone lines! After trying for weeks with no success, I used https://claimyr.com and got through to an IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that in cases with an OIC (like yours), you should keep that year's returns permanently, plus 7 years for everything else. But the most interesting thing she told me was that if you claimed depreciation on any assets, you should keep those returns until you dispose of the asset plus 3-7 years. I never knew that before!

I need to apologize and correct myself. After being skeptical about Claimyr, I decided to try it myself since I've been attempting to reach the IRS about a missing refund for over a month with no success. I'm honestly shocked - the service got me through to an IRS representative in about 20 minutes yesterday. The representative resolved my refund issue and also answered my questions about document retention (I've been cleaning out my home office too). She confirmed that the OIC documentation should be kept permanently and specifically mentioned keeping records of any home improvements that affect your basis when you eventually sell. Lesson learned: sometimes skepticism is good, but sometimes services actually do what they claim!

I worked for a CPA for 10 years and we always told clients to keep tax documents for 7 years minimum. But there are some documents you should NEVER throw away: - Records related to home purchase and significant improvements - Records of stock/investment purchases (until 7 years after you sell them) - Retirement account contributions (especially non-deductible IRA contributions) - Business asset purchases (until 7 years after you dispose of the asset) - Any year with an audit, settlement, or special tax situation (like your OIC) Don't just think about the IRS - sometimes you need old tax info for other situations like mortgage applications, social security verification, or settling estates.

Has anyone else noticed that the IRS sometimes can't even find THEIR OWN COPIES of your old returns? I needed a transcript from 2013 last year and they told me their system only went back 7 years! Had to go through this whole process with Form 4506 to request an actual photocopy which took 3 months to get. Might be worth keeping your own copies longer than you think...