Expert: Ed McFarland - 11/17/2006

Question
I would like to know if the time period for holding on to bank statments and cancel checks/duplicate copies has changed.  I heard it use to be (7) seven years.  Am I right or can I shred  them.   I thank you in advance.

Answer
Depends, general rule is the IRS audits can go back 6 years, So anything related to taxes you should hold on to that long.

Checks that would help establish cost basis for an asset should be kept as long you own the asset, major home improvements and stock purchases for examples.

The safe bet is that after six years, shred them or burn them to save on fuel bills.

Good luck