How long should you keep tax returns?
Updated on December 17, 2025
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Here’s a simple rule of thumb: keep your tax returns for at least three years, hold onto foreign-related documents such as overseas income records or FBAR/FATCA statements for six years, and keep any records tied to loss claims for seven years.
Certain documents, such as retirement contribution records, home-purchase paperwork, and any records that may affect future capital gains, are worth keeping permanently.
Why does the IRS use different time periods?
The IRS uses different retention periods because each one lines up with a different audit window. The more room there is for mistakes, missing information, or underreported income, the longer the IRS keeps the ability to review your return.
- 3 years is the standard window for a typical, accurate return.
- 6 years applies when income was underreported by more than 25% or when certain foreign financial assets weren’t fully reported.
- Foreign asset forms (like FBAR and FATCA) often require a longer retention buffer because the IRS needs more time to verify account balances, ownership, and international reporting.
These timelines matter even more for expats. When your income, accounts, or investments live outside the US, there are simply more moving parts and more opportunities for the IRS to double-check what was filed.
Need help filing your US Tax Return? Contact us today.
What documents should you keep, and for how long?
Below is a clear and scannable summary of the retention periods that expats rely on.
Tax record retention table for US expats
|
Document/record type |
How long to keep it |
Why it matters |
Expat notes |
|
Filed tax returns (Form 1040) |
At least 3 years |
Standard IRS audit window |
Store digital PDFs forever, which can be useful for visas, residency proofs, and bank reviews |
|
W-2, 1099s, income statements |
3 years |
Supports income reported on the return |
Keep foreign wage statements + currency conversion logs |
|
Receipts, deductions, expense records |
3 years |
Verifies deductions |
If using FEIE or FTC, keep foreign bills longer |
|
Foreign income records |
6 years |
IRS can audit foreign income for extended periods |
Save payslips, contracts, bank transfers, and FX rates |
|
FBAR/FinCEN 114 supporting docs |
5 years (6 years for extra safety) |
FinCEN’s review period aligns with a 6-year window |
Keep highest-balance proofs & statements |
|
FATCA/Form 8938 records |
6 years |
Matches the foreign asset reporting cycle |
Keep annual statements + valuation notes |
|
Bad debt or worthless investment claims |
7 years |
IRS requires documentation for 7 years |
Applies to foreign investments too |
|
Property purchase, sale & improvement records |
Ownership period + 3 years |
Needed to calculate capital gains |
Applies to foreign homes; keep receipts & contracts |
|
Retirement contribution records (IRA/401k) |
Permanently |
Needed to track cost basis |
Maintain even if you live abroad long-term |
|
Foreign gift or trust documents (Forms 3520/3520-A) |
At least 7 years |
High-penalty forms with an extended review period |
Keep indefinitely if unsure |
When should expats keep records longer than three years?
Here are a few examples where you’ll want to extend your retention period:
- Foreign income complexity: If your salary, freelance income, or rental income comes from another country, the IRS can revisit those items for up to six years.
- FBAR and FATCA reporting: FinCEN requires FBAR-related records to be kept for 5 years from the FBAR due date. But some FBAR-related penalties can run up to 6 years; these forms have steep penalties, and the documentation behind them (annual statements, max balances, proofs of ownership) should be kept for six years or more.
- Foreign property: Bought a home in Australia or sold one in the UK? Keep the purchase and sale contracts, renovation receipts, and loan records for the entire ownership period plus at least three years.
- Using FEIE or Foreign Tax Credit: Both require you to prove foreign taxes paid or foreign earned income. If your situation is messy, lean toward six years.
- Amended returns: If you amend a return, keep all records for at least 3 years from the date you filed the original return, and consider keeping them longer (up to 6 years) if foreign income or assets were involved.
Important! The IRS doesn’t automatically require expats to keep all foreign income or asset records for six years.
The official rule is still three years for most returns, unless income was substantially underreported or certain foreign financial assets weren’t fully disclosed.
So why do many tax professionals recommend six years anyway?
Because foreign income, overseas accounts, and cross-border investments create more chances for reporting mismatches. Keeping six years of records gives you a safer buffer if the IRS ever needs clarification.
What happens if you throw out documents too early?
Throwing documents out too early doesn’t always cause problems immediately, but it can make life much harder if the IRS, a bank, or a government agency abroad requests proof later. For example:
- You may not be able to prove deductions or credits.
- Your cost basis for property or investments might be impossible to calculate.
- Foreign reporting penalties can stick even when unintentional.
- Banks, immigration offices, and even landlords abroad sometimes ask for old US returns.
As an expat, you depend on documentation more often than people stateside do. Keeping clean digital files is the cheapest insurance you can buy.
How to dispose of old tax returns
Once your tax documents reach the point where they can be safely discarded, don’t toss them straight in the trash. Tax returns contain sensitive data, so shred every page. If any information is clearly visible, black it out before you shred.
Most shredded paper can be recycled, but instead of leaving it on the curb, take it directly to a recycling center or secure disposal service. This keeps your information protected from anyone who might go digging and ensures your old records are destroyed properly.
FAQs
-
Do I need to keep tax records longer if I move between different countries?
Yes. When you switch countries, the IRS may require documentation that explains how your income changed, when you became a tax resident elsewhere, and how foreign taxes were calculated. It’s safest to keep records from the year you moved for at least six years, since cross-border income often gets extra scrutiny.
-
Do I need to store my foreign tax returns too?
-
Is it okay to keep only digital copies of my tax documents?
-
What should I do with foreign-language tax documents?
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