Which tax documents should you never throw away?

[devinluke]

I have been organizing my old files, and I have found out that I have a huge stack of tax documents going back several years. I do not know what documents can be safely thrown away and which ones I need to keep in my possession forever. Do you have some tax-related documents (such as returns, W-2s, 1099s, or property-related documents) that you should never dispose of? Moreover, what is the average period of time in years that supporting documents, such as receipts, deductions, or investment statements, are advised to be retained?

 

[danisjohn]

You should keep certain tax documents permanently, including copies of your filed tax returns, documentation of property acquisitions, and records for investments you still own. While the IRS generally has a three-year window for audits, keeping these key documents indefinitely can be crucial for proving your tax basis on a home or investment when you eventually sell it.