IRS Publication 552: Essential Recordkeeping Guide for Individuals in 2025 – What to Keep and How Long

Adam Hayes, Ph.D., CFA, brings over 15 years of Wall Street expertise as a derivatives trader and financial writer. With advanced degrees in economics and sociology, and certifications including CFA and FINRA licenses, Adam combines deep knowledge of economics and behavioral finance. He currently teaches economic sociology and finance studies at Hebrew University in Jerusalem.

What Is IRS Publication 552?

IRS Publication 552 is an authoritative resource published by the Internal Revenue Service that outlines which tax-related documents individuals should keep and the recommended duration for retaining them. This guide helps taxpayers maintain accurate records for income verification, expense tracking, and substantiating tax returns.

The IRS emphasizes maintaining precise records but does not prescribe a specific recordkeeping method, allowing flexibility in how taxpayers organize their documents.

Key Highlights

• IRS Publication 552, titled "Recordkeeping for Individuals," explains the importance of keeping records, types of documents to retain, and retention periods.
• It focuses solely on individual taxpayers and does not cover business recordkeeping, which is addressed in IRS Publication 583.
• Effective recordkeeping benefits various financial activities beyond taxes, including loan applications, property purchases, and insurance claims.

Understanding the Importance of IRS Publication 552

Accurate and accessible records simplify tax filing and are crucial for determining the correct cost basis when selling investments or property.

Essential records recommended by the IRS include:

• W-2 Forms
• 1099 Forms
• Filed Tax Returns
• Bank Statements
• Brokerage Statements
• Pay Stubs
• Receipts or invoices for significant purchases
• Canceled checks or proof of payment for major expenses
• Insurance Policies
• Real estate closing statements
• Property deeds
• Vehicle or boat titles
• Vital records such as birth and marriage certificates

Note

IRS Publication 552 addresses recordkeeping for individuals only. For business-related records, refer to IRS Publication 583.

Why Maintain Good Records?

The IRS outlines multiple benefits of solid recordkeeping, extending beyond tax compliance:

• Improved budgeting and financial management
• Tracking cost basis for assets, inheritances, and investments
• Facilitating loan applications
• Supporting insurance claims and applications

Records can be stored physically or electronically using accounting software, depending on personal preference.

How Long Should You Keep Tax Records?

According to IRS.gov, the retention periods for tax records start from the date the return is filed or the tax is paid. Key guidelines include:

1. Keep records for at least 3 years if none of the special situations apply.
2. Retain records for 3 years from filing or 2 years from tax payment when filing a claim for credit or refund.
3. Maintain records for 7 years if claiming a loss from worthless securities or bad debt deductions.
4. Keep records for 6 years if unreported income exceeds 25% of gross income.
5. Retain records indefinitely if no return was filed.
6. Keep records indefinitely if a fraudulent return was filed.
7. Employment tax records should be kept for at least 4 years after the tax due date or payment date.

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