Question
How long should I keep tax records?
Answer
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.
There are times when you may wish to keep your records longer than the normal statute of limitations. Examples include 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.
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.
If you under-report your income by 25% or more, the statute of limitations increases to six years.
There is no statute of limitation for false or fraudulent returns.