What Is the Legal Retention Period for Documents

The UPPBRA stipulates that a three-year retention period applies if a law does not provide for a retention period. Destruction under this Act does not constitute a criminal offence; However, destruction in less than three years can expose the organization to certain risks. Second, it has been argued that most tax records under the Federal Internal Revenue Code should only be retained for three years (plus a longer audit period).5 Given that tax records also make up the majority of records kept by most organizations for long periods of time, three years appear to be the de facto retention period for most records. It therefore seems reasonable, in terms of reducing red tape and effectively managing an organization, to retain most, if not all, records for the same three-year retention period (with very few exceptions). In 2017, banking giant Morgan Stanley was fined $13 million, in part for improperly storing and managing records. All records among the different types have their own specific retention periods. Often, lawyers wait to evaluate their case management strategies until they go through a significant transition period (sale of a firm, retirement, etc.). Ideally, this guide will help you create policies and procedures in advance to avoid these issues later. But even if you`re in the middle of a transition and need information on how to manage your customer files, this guide is a great place to start. In many cases, documents are too secure to be recycled or archived.

Document shredding may be necessary to properly dispose of paper records. Improper destruction of records could result in fines and other penalties set by federal and state laws. Shred Nations can help you find a shredder contractor that meets all your document retention needs. The reader should note that the whole of this article suggests that the three-year retention period for records (with a few exceptions) may be “presumed” in cases where no specific retention period for records is specified or where no legal requirement has been established after extensive research. However, a “presumption” is not an absolute rule or fact, and those who follow the presumption may take legal risks. Almost all documents eventually outlive their usefulness, but do you know when you can legally destroy them? Has your staff been part of your staff? First, while the PRCs contain limited restrictions on document retention, you may be subject to other responsibilities for document retention under local, state, and federal laws.5 It`s important to make sure the correct record isn`t shredded or destroyed, but it can also cause problems. In most cases, each record will eventually exceed its retention period when it becomes important to make sure you eliminate clutter. The more sensitive records you have stored, the more sensitive information there is to lose. A records retention program includes the systematic storage, tracking, and destruction of documents and business records. The IRS has set retention periods for tax documents. In general, you must keep records in support of an income item, deduction or credit on your tax return until the limitation period on the tax return expires. The limitation period is three years in most cases and can be up to seven years, depending on the circumstances.

Again, please consult a professional accountant before following any of the documents provided. Here are some additional accounting receipt retention periods: Secure destruction of hard copies can be a cost-effective way to implement a document retention policy without incurring long-term storage costs. Electronic storage is much more cost-effective and also more accessible. Note that even if the customer requests their file, you must keep your own copy of the file for the duration of your company`s file retention period. This guide does not necessarily take into account other documents that you should keep in the course of your business activities. This includes escrow account records, tax documents, business documents, accounts payable, etc. You may want to seek the advice of an accounting professional for advice on these files. An electronic document management system (DMS) provides version control, remote retrieval, OCR, and indexing, allowing organizations to easily track record retention periods and document retrieval remotely.

Guidelines have been established on the retention period of the various documents. There are strict retention periods that every company must follow. Here are some general retention periods for common business records: In addition to the retention requirements for records for which no retention period is specified, document administrators often cannot find laws or regulations related to certain types of records. Some requests are extremely difficult to locate, while other requests may not exist. Even an experienced researcher will rarely find all the requirements for organization-related datasets. In general, some requirements are overlooked. However, failure to conduct (and document) adequate legal research is never a valid excuse for not finding the requirements for cases! If, after reasonable research, no document archiving requirements and no record retention periods have been found, it is reasonable to assume that no legal retention period should be met. .