Before I start long searches of legal documents, etc. Does anyone know how long you should keep past tenant information, applications, credit reports, things with personal identification (birth date, ss#) providing they don't owe you any money? I would like to shred some files.

I would need to ask the mice. I store everything in a distant location.

The OLD IRS code said you should keep records for 7 years. But things have changed. A farm bill passed around 12 years ago allows the IRS to go back 20 years or MORE!

I was being audited. I rent out some of my apartment garages along a commercial ally way. My tenants are immigrants without vehicles and they don't need a garage.

One of my tenants I had to evict. He was a loud mouth and a drunk. In retaliation, that evicted tenant reported to the IRS that I pocketed my garage rents and did NOT report that income to the IRA or pay taxes on it! I was audited.

The IRS drove by the property and found 5 garages being rented to non-tenants and 3 garages being used by tenants on their apartment lease. So the IRS calculated at $75 per month x 5 garages x 20 years, I didn't pay taxes on $90,000 worth of income. Taxes and penalty, they wanted BLOOD FROM ME.

So I showed up to an audit with NOTHING IN MY HANDS. They had not told me what they were looking for or for which property they were trying to audit. They wanted to throw the book at me for not complying. I explained that I have over 200 boxes of old records plus 1 dozen metal filing cabinets with current tenant information. I don't what you want and which property you are tying to investigate.

I said that I didn't care that they can now go back 20 to 40 years! Why, Because I started to keep records when I got my first job, at age 14! They would have to disclose the nature of the audit and which property they wanted to investigate.

Finally they told me it was the property with the garages I rent out to the business behind the building in the common alleyway . I laughed and told them I only took accounting in high school and college, but they are real dummies!

They wanted to know why. I said, "If you only pulled my tax returns for that property you will see that the Garage Rents paid by others, not renting an apartment, were added the the schedule NOT AS RENTS but as ROYALTY".

If you add up that "Royalty", you will see I reported that $90,000 income over the last 20 years.

I made a trip to one of my buildings and pulled out of the garage a box of tax return and that buildings garage leases for a 5 year period. Made copies and faxed them over to those IRS auditors. My case was closed.