Did you know the average American spends 13 hours every year preparing federal tax returns? For small business owners, that figure almost doubles to 24 hours!
For most people, three years is a good time frame, but it could be much longer in many situations. Plus, it can often be a good idea to hold onto records longer than the required time for other non-tax reasons.
According to the IRS, you should keep records relating to property “until the period of limitations expires for the year in which you dispose of the property.
For that reason, a business owner probably should plan to keep at least six years worth of 1099s and other records of business income and expenses to be safe.