Expert: Arthur Naman - 9/12/2010

Question
We have all the records from our 20 years in business.  How long must we keep them?   They are separated by fiscal year. We are in Michigan.



Thank you

Answer
Generally records should be kept 7 years. That is the general rule for ordinary income and expenses. If there are fixed assets purchased, then records should be kept until the asset is disposed of plus several years. There would be a similar rule for long term mortgages and loans.


The answer is depending on tax laws. Tax returns can be audited for up to I believe 3 years, not including any evidence of fraud which I assume is not the case in your situation.

Please discuss this with whoever is preparing your tax returns.

thank you.