--- title: "How long should resellers keep tax records? | The Reseller Index" description: "Usually 3 years after you file; 6 if you left out over 25% of gross income, 7 for a bad debt or worthless securities claim, and no limit if you never filed." canonical: https://resellerindex.com/tax/irs/how-long-to-keep-tax-records/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- # How long should a reseller keep receipts and sales records? **Generally, keep the records that support a return until its period of limitations runs out, which is 3 years after you file in most cases; a return filed early is treated as filed on its due date.** It is 6 years if you didn't report income that is more than 25% of the gross income shown on the return, 7 years if you claim a loss from worthless securities or a bad debt deduction, and unlimited if you don't file or you file a fraudulent return. General information from IRS sources, not tax advice. It doesn't say what you should file; check with a tax professional about your own situation. Checked against the IRS pages listed below on Oct 19, 2026. ## What the IRS says > "Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out." [How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records), How long should I keep records?; page reviewed or updated Jun 30, 2026. > "Returns filed before the due date are treated as filed on the due date." [Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583), How Long To Keep Records; page reviewed or updated Apr 30, 2026. > "Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition." [Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583), How Long To Keep Records: Assets; page reviewed or updated Apr 30, 2026. ## The periods of limitations *Publication 583 (12/2024), Table 3, and the IRS page How long should I keep records? Years count from the date the return was filed unless stated.* | If you | Keep records for | | --- | --- | | Owe additional tax and none of the cases below apply | 3 years | | File a claim for credit or refund after you filed your return | The later of 3 years or 2 years after the tax was paid | | Don't report income that you should report, and it is more than 25% of the gross income shown on the return | 6 years | | File a claim for a loss from worthless securities or a bad debt deduction | 7 years | | File a fraudulent return | Not limited | | Don't file a return | Not limited | | Have employees (employment tax records) | At least 4 years after the tax becomes due or is paid, whichever is later | ## Records that support a later return The clock runs on the return a record supports, not on the year you got the receipt. Publication 583 says to keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. For a reseller who keeps an inventory, an item's cost becomes part of cost of goods sold in the year it sells, so its purchase receipt supports that later return. Equipment works the same way: Publication 583 says to keep property records until the period runs out for the year you dispose of the property, because they are needed to figure depreciation and the gain or loss. Publication 583 also suggests keeping copies of your filed tax returns, which help in preparing future returns and in making computations for an amended return. ## Before you shred anything The IRS says not to discard records that are no longer needed for tax purposes until you check whether you have to keep them longer for other reasons. Its example: your insurance company or creditors may require you to keep them longer than the IRS does. ## Worked examples ### A 2025 return filed early The 2025 Form 1040 was due April 15, 2026. If you filed it on February 20, 2026, it is treated as filed on April 15, 2026, so the 3-year period for its records runs to April 15, 2029. If the 6-year rule applied, it would run to April 15, 2032. ### Books bought in 2024, sold in 2026 You keep an inventory and buy a box of books for $300 in November 2024. The books are in your closing inventory at the end of 2024 and 2025 and sell in 2026, so their $300 cost is part of cost of goods sold on the 2026 return. The 2024 receipt supports the 2026 return, so its 3 years count from when that return is filed, not from 2024. ### A label printer bought in 2023 and sold in 2026 Its purchase and depreciation records are needed to figure the gain or loss when you sell it, so under Publication 583 they are kept until the period of limitations runs out for the 2026 return, the year you disposed of it. ## Edge cases - Electronic copies follow the same rules: Publication 583 says electronic storage systems are subject to the same controls and retention guidelines as the original hard copy records. - If you got property in a nontaxable exchange, Publication 583 says to keep the records on both the old and the new property until the period runs out for the year you dispose of the new property. - Employment tax records are about employees. Paying an independent contractor brings its own reporting rules: see [the 1099-NEC $2,000 threshold](https://resellerindex.com/tax/irs/1099-nec-2000-threshold-helpers/). - A claim for a credit or refund changes the clock: the later of 3 years from filing or 2 years from paying the tax. ## What to do 1. File records by tax year, and keep each year's filed return with them. 2. Keep inventory receipts until the return that deducts their cost is past its period of limitations, which can be years after the purchase. 3. Keep records for equipment and vehicles until the period runs out for the year you sell or dispose of them. 4. Check with a tax professional before discarding records if one of the longer periods could apply to you. ## Questions ### Does the 3 years start on January 1 or when I file? When you file. The IRS counts the years from the date the return was filed, and a return filed before the due date is treated as filed on the due date. ### Do I need to keep platform sales reports for 7 years? The IRS table ties the 7-year period to one case: a claim for a loss from worthless securities or a bad debt deduction. The general period is 3 years, or 6 if income of more than 25% of the gross income shown went unreported. ### What about receipts for things I bought for myself and later sold? Publication 583 says to keep records for property until the period runs out for the year you dispose of it, and the IRS's Form 1099-K questions suggest keeping accurate records for personal items you may sell, since what you paid decides whether a sale is a gain or a loss. ## Related questions - [What records should a reseller keep for the IRS?](https://resellerindex.com/tax/irs/what-records-should-a-reseller-keep/) - [How does cost of goods sold work for items you resell?](https://resellerindex.com/tax/irs/cost-of-goods-sold-for-resellers/) - [Do you owe tax on a 1099-K for personal items sold at a loss?](https://resellerindex.com/tax/irs/personal-items-sold-at-a-loss-1099-k/) - [Form 1099-K for resellers: the $20,000, 200-transaction test](https://resellerindex.com/guides/1099-k-for-resellers/) - [State rules: marketplace sales tax and state 1099-K thresholds](https://resellerindex.com/tax/states/) - [All federal tax answers for resellers](https://resellerindex.com/tax/irs/) ## General information, not tax advice This page summarizes IRS publications, instructions and guidance as read on Oct 19, 2026. It doesn't say what you should file or deduct. Tax rules depend on your facts, and state rules aren't covered here (see [state rules](https://resellerindex.com/tax/states/)). Check with a tax professional. ## Sources Every figure, rule and quote on this page comes from one of these official pages. - [How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) (IRS, page reviewed or updated Jun 30, 2026; read Oct 19, 2026) - [Publication 583 (12/2024), Starting a Business and Keeping Records](https://www.irs.gov/publications/p583) (IRS, page reviewed or updated Apr 30, 2026; read Oct 19, 2026) - [Instructions for Form 1040 (2025)](https://www.irs.gov/instructions/i1040gi) (IRS, page reviewed or updated May 7, 2026; read Oct 19, 2026) - [Form 1099-K FAQs: What to do if you receive a Form 1099-K](https://www.irs.gov/newsroom/form-1099-k-faqs-what-to-do-if-you-receive-a-form-1099-k) (IRS, page reviewed or updated Jun 27, 2026; read Oct 19, 2026) Subscribe: https://resellerindex.com/subscribe/ Want these numbers next to your own sales? 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