Business Tax Recordkeeping & Compliance Dashboard

Business Tax Recordkeeping & Compliance Dashboard (USA)

Maintaining accurate and organized records is essential for tax compliance in the U.S. You need documentation to support the income, expenses, credits, and deductions you report on your tax return. Proper recordkeeping also helps you monitor your business's financial health.

General Record Retention: Keep records for **3 years** from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. Employment tax records should be kept for at least **4 years**. Records for assets should be kept as long as you own the asset plus 3 years after disposing of it.

Use this checklist to review common types of records you should maintain. Mark their status and add any relevant notes for your tracking.

Income Expenses Payroll/Employees Assets Tax & Bank

Income Records

Sales Records (Invoices, Receipts)

Importance: To verify all gross income received. Retention: General 3 years.

In Place Needs Attention

Notes:

Bank Deposit Slips & Records

Importance: To trace income deposits into your business bank account. Retention: General 3 years.

In Place Needs Attention

Notes:

Form 1099s and other Information Returns Received

Importance: To verify income reported by clients or payment processors. Retention: General 3 years.

In Place Needs Attention

Notes:

Expense Records

Expense Receipts & Invoices

Importance: Primary documentation to support all deductible business expenses. Retention: General 3 years.

In Place Needs Attention

Notes:

Canceled Checks / Bank Withdrawal Records

Importance: To verify payments made, especially if checks are used frequently. Retention: General 3 years.

In Place Needs Attention

Notes:

Credit Card Statements (for Business Cards)

Importance: To verify expenses paid via business credit cards. Retention: General 3 years.

In Place Needs Attention

Notes:

Mileage Logs

Importance: Required documentation to deduct business use of a vehicle, whether using standard mileage rate or actual expenses method. Retention: General 3 years.

In Place Needs Attention

Notes:

Travel & Meal Documentation

Importance: Specific documentation is required for business travel and meal deductions (purpose, attendees for meals, date, location, amount). Retention: General 3 years.

In Place Needs Attention

Notes:

Payroll & Employee Records (If Applicable)

Payroll Registers

Importance: Summaries of wages paid, deductions, and taxes withheld for employees. Retention: At least 4 years.

In Place Needs Attention

Notes:

Employee Timesheets & Wage Records

Importance: To support hours worked and wages paid, especially for hourly employees. Retention: At least 4 years.

In Place Needs Attention

Notes:

Forms W-4 (Employee's Withholding)

Importance: To document the information used to calculate federal income tax withholding. Retention: At least 4 years.

In Place Needs Attention

Notes:

Forms I-9 (Employment Eligibility Verification)

Importance: To verify the identity and employment authorization of individuals hired. Retention: 3 years after date of hire OR 1 year after employment is terminated, whichever is later. (Federal, not just tax).

In Place Needs Attention

Notes:

Asset Records

Asset Purchase Documents

Importance: To document the cost basis of significant business assets (equipment, vehicles, real estate) for depreciation and gain/loss calculations upon sale. Retention: Keep as long as you own the property + 3 years after disposition.

In Place Needs Attention

Notes:

Depreciation Schedules

Importance: To track depreciation taken on business assets over their useful life. Retention: Keep as long as you own the property + 3 years after disposition.

In Place Needs Attention

Notes:

Asset Sale or Disposition Documents

Importance: To calculate gain or loss when selling or otherwise disposing of a business asset. Retention: 3 years after disposition.

In Place Needs Attention

Notes:

Tax Filings & Bank Records

Prior Year Tax Returns

Importance: Necessary reference for current year filing, carryforwards (NOLs, credits), and potential audits. Retention: Indefinitely recommended, minimum 3 years after filing.

In Place Needs Attention

Notes:

Estimated Tax Payment Records

Importance: To prove estimated tax payments made throughout the year and avoid underpayment penalties. Retention: General 3 years.

In Place Needs Attention

Notes:

Forms 1099 and W-2s Issued

Importance: Copies of information returns you sent to contractors (1099) or employees (W-2). Retention: At least 4 years (W-2 related), General 3 years (1099 related).

In Place Needs Attention

Notes:

Bank Statements (Business Accounts)

Importance: Essential overview of all transactions, crucial for reconciliation and verifying income/expenses. Retention: General 3 years.

In Place Needs Attention

Notes:

Business Formation & Legal Documents

Importance: Documentation of your business structure, ownership, and legal compliance (articles of incorporation/organization, partnership agreements, licenses, permits). Retention: Indefinitely recommended.

In Place Needs Attention

Notes:

Business Tax Recordkeeping & Compliance Checklist

Checklist of common business tax records and their status based on your input. Maintaining these records is crucial for tax compliance.

General Retention: 3 years from filing (or 2 years from payment), 4 years for employment tax, assets longer. Consult general guidance for specifics.

** This is a planning checklist. Consult a tax professional for specific requirements.

Your Recordkeeping Status:

Select status for each record type and add notes, then click "Generate Compliance Checklist".