Legal Requirements for Document Retention

• Don't throw them away yet.file folders image by CraterValley Photo from Fotolia.com
  
  The rules for medical, corporate, tax and other documents require keeping many of them on hand for a certain number of years, possibly forever. The rules vary according to the kind of document, and state governments, the federal government and regulatory boards have different rules and recommendations, but there are general guidelines that can help you stay within the law.
  
  

Medical

• Medical providers covered by the Health Insurance Portability and Accountability Act must keep medical records on file for 6 years, according to the American Speech and Hearing Association. If a patient dies, records must be kept for 2 years after his death. Records for Medicare patients who aren't covered by HIPAA must be kept for 5 years; Medicaid requirements vary by state.
  
  

Tax Records

• The IRS says that for any year you don't file a return, or you file a fraudulent return, you should keep your records indefinitely. If you under-report income by more than 25 percent, keep the files for 6 years; otherwise, keep your records for 3 years.
  
  

Business Records

• The Sterck Kulik O'Neal accounting firm says many business records must be kept permanently. They are: articles of incorporation, corporate bylaws, capital stock and bond records, contracts, partnership agreements, copyright and trademark registration, meeting minutes and legal correspondence. Mortgages must be kept for 6 years, personnel files for 4 years.
  
  

Sarbannes-Oxley Act

• The 2002 Sarbannes-Oxley Act imposed a number of new record-retention requirements on businesses covering any document, from spreadsheets to e-mails, that the company used to put together a company's financial report. Most importantly, once there is even a possibility of a government investigation, it becomes a federal offense to destroy any document.