How long do invoices have to be kept for

Paper records must be stored within the State. Exceptions to this require Revenue agreement and are subject to conditions. Electronic records must be recorded and stored in accordance with the electronic invoicing rules.

Revenue has extensive powers to inspect your records. It is an offence if you or your employees fail to co-operate with Revenue in relation to the inspection of your records.

Revenue officials will have proof of their identity when visiting your business to inspect your records. Published: 01 June Please rate how useful this page was to you Print this page.

It looks like you have JavaScript disabled. Certain parts of this website may not work without it. Please enable JavaScript for the best experience. Your choices on cookies This website uses cookies in order for our feedback functionality to work. They help in preparing future tax returns and making computations if you file an amended return. The following questions should be applied to each record as you decide whether to keep a document or throw it away.

Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

If you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property.

When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. Hoping to get away with tax fraud? Just something to keep in mind! The standard three year period of limitations applies to any deductions you make related to your property depreciation, loss from a sale, etc. But sometimes the length of time between when you dispose or sell your property and when you no longer need to keep those documents can be longer than 3 years.

Say you dispose of a property by selling it during the tax year, report the financial gain on your tax return, and file your tax return right on the tax deadline of April 17, These records usually include deeds, titles, and cost basis records for instance, receipts for equipment such as computers or vehicles. If you have online banking, no. The digital copy will be just fine. This means you must be able to produce a printed, legible copy of the document for them upon request. Digitizing your records is also a great way to avoid accidentally tossing them in a move or an overzealous fit of spring cleaning.

We recommend scanning every record and receipt in your business, tagging it with a descriptive name, and archiving it forever. If you do end up going the paperless route, remember to keep a backup copy of your documents in a secure second location, like a password-protected hard drive, or a secondary cloud storage service. Your Bench subscription includes unlimited document storage, which means you can keep every receipt, invoice, or IOU in the same place as your bookkeeping.

At year-end, your CPA or tax professional can review your documents and completed financial reports side-by-side, making tax filing a breeze. Also include copies of correspondence with the errant customer, such as notices of late fees or reminders of contractual obligations. Keeping your invoices can help you prove the validity of profit and loss statements with the U.

Internal Revenue Service if you are selected for an audit, as well as support your reported earnings and deductions.

Having an invoice archive can also help with tax preparation, tracking expenditures and overall business budgeting. Financial records of all types can help you better assess and self-audit your business to ensure sound financial planning and accounting procedures.

The IRS recommends keeping invoices that will help substantiate business income or deductions during the entire statute of limitations for when the tax records can be changed or reviewed. This is generally three to seven years, depending on the circumstances.