Now that my corporate tax return has been filed, what records I should hang on to and for how long?

Small businesses should err on the side of caution and keep as much supporting documentation on file as possible in case of an audit by the Internal Revenue Service.

Individuals should maintain records related to tax returns, such as medical bills, year-end brokerage statements and 1099s, for at least six years after filing.

Likewise, you should hold on to Schedule K-1s from partnerships or so-called S corporations for at least six years. Keep records of financial transactions such as bank statements, checks, bank reconciliation statements, inventory and sales records and purchase journals for at least seven years.

Business records that should be kept indefinitely include capital stock records, corporate records and minutes, tax returns and audited reports. When it comes to employee records you should hold timecards and time sheets for at least two years, payroll records for three years and wage payments, W-4 forms and records of fringe benefits paid for at least four years.

When you are ready to discard financial records older than the recommended limits, use a shredder rather than toss papers into a dumpster. And before discarding specific records that you are unsure about, check with your accountant. You can find more information about record keeping at http://www.irs.gov/newsroom/article/0id10511100.html .