Like many of you my tax returns read more like books. A typical return is between 300-500 pages. I have returns dating back well beyond 20 plus years in a big old file cabinet- a big ol' unsightly file cabinet. In my opinion all file cabinets are unsightly.

I understand what the IRS says what they can do when it comes to audits - typically going back 5 to 7 years but they have the disclaimer, unless we find a reason to go back further.

Back in the 1990's paper was the standard. Some of these come with a small floppy drive. I have well over a decade of returns that are both paper with a CD........(but who now a days has a CD player on a computer). I have about 5 years that are on a thumb drive.

Some might ask why I have such a collection gathered? Well I did my first 1031 back in the mid 1990's. My thought process is , the IRS I suppose could dig back that deep to see that I exchange one property back then and its replacement a few more times after that.

So when it comes to tax returns - how long and how do you retain your records and more importantly - why. I don't see much good with a small floppy disk any longer. But do you pitch the paperwork along with it?

I tend to be rather conservative in my claiming of expenses - there isn't much reason to be reckless. At the same time, I do use a significant amount of the late great Al Aelio's techniques for reducing tax liabilities.

Thank you, WMH.

In whatever form they came at the time, I'll keep them until I die & my kids throw them away.

File cabinet & plastic box

I've delinated a specific year (2006 I think), before which I've so far kept paper copies as well as receipts etc. After this specific year I keep paper for 3 yrs then digitize the return, support documents and computation notes. In spare time, as I'm bored, I digitize the historical returns & supportive documents. Takes a several hours per return to unstaple, unclip, strighten out paper receipts, computational notes & scan pages and fading receipts. Currently using Canon R60 double side 50 sheet scanner. Save scanned files as pdf on encripted confidential hard disk.

Time kept: forever

Why: It's cheap and easy

I switched to a paperless office over a decade ago. I have all receipts, tax returns, leases, etc since then on a small external hard drive smaller than my wallet. I do a regular back up and all is good. Use a filing system that you know how it works and keep that same system in place year over year. If you asked me for the Lowes receipt for the property 123 Main St in Nov of 2012, I could get it to you in less than 30 seconds.

We have ten totes marked for taxes with the years on them.

Have more and more electronic each year but still a lot of paper receipts and such.

Each year we take the oldest down and start shredding. Then we name it the new year. Rinse and repeat.

We give the tax guy a thumb drive with the spreadsheet files on it. That drive gets put in the box as an additional back up.

Hi WMH [NC]),