How Long Should I Keep Tax Records?

Situations Requiring Longer Recordkeeping

There are times when you may wish to keep your records longer than the normal statute of limitations.

  • Examples: Information about the purchase, sale, and adjusted basis of a property; information used to claim a Montana tax credit that you are carrying over to a future tax year; and net operating losses.

Net Operating Loss Records

You should keep net operating loss records for all years you claim the loss and for at least five years after the last year you claimed the loss.

How Long Should I Keep my Property Tax Records?

You should keep property records for:

  • As long as you own the property.
  • As long as they are needed to figure original or replacement value.
  • At least five years after you report the sale or disposition of the property on your return.

Extended Statute of Limitations

If you under-report your income by 25% or more, the statute of limitations increases to six years.

False or Fraudulent Returns

There is no statute of limitation for false or fraudulent returns.

The information provided here is not comprehensive and may not apply to your specific tax situation. 

A qualified tax professional can help you determine other records you may need to keep. You should keep tax records at least until the statute of limitations expires for that return. In Montana, this is usually three years from the due date of the return or the day it was filed, whichever is later.