Losing someone is heavy. Dealing with their paper trail is just... exhausting. You’re sitting there, surrounded by dusty accordion folders and shoe boxes full of receipts, wondering if you can just toss the whole mess into a shredder and call it a day. But then that nagging voice in the back of your head whispers about the IRS. Honestly, the question of how long to keep tax returns after death isn't just about storage space; it’s about protecting the estate from a surprise audit two years down the road when the money has already been distributed to heirs.
The short answer? Keep almost everything for at least three years. The long answer is a bit more nuanced because the IRS doesn't just stop caring about a person because they passed away. The executor or personal representative basically steps into the deceased person's shoes. If the IRS finds an error, they’re coming for the estate’s assets.
The Three-Year Rule is Your Baseline
Most people think once the final 1040 is filed, the clock stops. It doesn't. The IRS generally has a three-year window to audit a return. This period starts from the date the return was filed or the due date, whichever is later. If your Uncle Bob passed away in 2024 and you filed his final return in April 2025, you need to keep those records until at least April 2028.
But wait. There’s a catch.
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If there is a "substantial omission" of income—meaning 25% or more of gross income wasn't reported—the IRS can look back six years. It’s rare, but it happens, especially if the deceased had complex investments or side businesses. Because of this, many tax pros like those at H&R Block or the AICPA suggest holding onto the actual tax returns forever, while tossing the supporting documents (receipts, bank statements) after seven years. Why seven? Because it covers the six-year audit window plus a little "just in case" padding.
What Actually Needs to Stay in the File?
Don't keep every utility bill from 1994. It’s clutter.
Focus on the big stuff. You need the 1040s, obviously. You also need W-2s, 1099s, and any documents related to the cost basis of assets. This is where people usually mess up. If you inherit a house, you need to know what the deceased paid for it and what improvements they made. This determines the "step-up in basis," which is a huge tax break. Without those records, you might end up paying way more in capital gains tax than you should.
Keep records of medical expenses if they were used to blow past the standard deduction. Keep records of charitable donations. If the deceased had a 401(k) or an IRA, you need the Form 8606s to track any non-deductible contributions. Basically, if a piece of paper proves a number on a tax return, keep it.
The "Permanent" Folder
Some things should never be shredded. These aren't technically tax returns, but they are the bedrock of the estate's tax life.
- The death certificate (get multiple certified copies).
- Letters Testamentary (the court document saying you're in charge).
- The final gift tax returns (Form 709).
- Records of any business interests or partnerships.
Dealing with the IRS "Request for Prompt Assessment"
If you're the executor, you probably want to close the estate as fast as possible. You don't want to wait three years for the IRS to maybe-sorta-kind-of send a letter. You can actually speed this up using Form 4810.
This form is a "Request for Prompt Assessment." It asks the IRS to finish their review of the deceased person’s tax returns within 18 months instead of three years. It’s a smart move. It limits the window of uncertainty. However, it doesn't protect against fraud or 25% omissions. Those stay open for six years or indefinitely. Even if you use Form 4810, you still need to know how long to keep tax returns after death to satisfy state laws, which often have different timelines than the feds.
State Taxes are a Different Beast
Don't forget the state. New York, California, and Pennsylvania (just to name a few) have their own ideas about how long records should be kept. Some states have a four-year or even a five-year statute of limitations. If the deceased lived in a state with an inheritance or estate tax, the record-keeping becomes even more critical. You’ll want to check with a local CPA because state tax collectors can be just as persistent as the IRS.
Digital vs. Paper
It’s 2026. You don't need a basement full of bankers' boxes. The IRS accepts digital records as long as they are legible and can be easily reproduced. Scan everything. Use an encrypted cloud drive or a high-quality external hard drive. Once it's scanned and backed up in two different places, you can finally have that "shredding party."
Just be careful with sensitive info. Identity theft doesn't stop after death. In fact, "ghosting"—where scammers use a deceased person's Social Security number to file fake returns—is a massive problem. Shred the paper copies; don't just throw them in the trash.
When Can You Actually Let Go?
There is a psychological weight to these papers. Holding onto them feels like holding onto the person. But eventually, the files become useless. If seven years have passed since the final estate tax return and the final individual return were filed, and no one has heard a peep from the IRS, you are likely safe.
Check for any ongoing litigation or unresolved debts first. If the estate is involved in a lawsuit, keep every scrap of paper until the lawyers give you the "all clear." Otherwise, once you hit that seven-year mark, you've done your due diligence.
Actionable Next Steps
- Sort by Date: Separate the deceased's papers into years. Anything older than seven years (that isn't related to property basis or retirement accounts) can likely be shredded immediately.
- Identify Property Records: Pull out any documents related to the purchase of real estate, stocks, or jewelry. You need these to calculate the step-up in basis for the heirs.
- Digitize the Essentials: Scan the last three years of tax returns and all supporting documents. Save them in an "Estate of [Name]" folder.
- File Form 4810: If you are the executor and want to distribute assets sooner rather than later, talk to a tax professional about requesting a prompt assessment from the IRS to shorten the audit window to 18 months.
- Secure the SSN: Notify the Social Security Administration of the death if the funeral home hasn't already done so. This helps prevent someone from filing a fraudulent return in the deceased's name.
- Consult a Pro: If the estate is worth more than the current federal exclusion (which is quite high but varies by year), or if there are foreign assets, don't DIY this. Get a tax attorney.
The burden of being an executor is real. But by keeping the right records for the right amount of time, you're making sure the legacy isn't tarnished by an avoidable tax bill. Keep the returns, keep the receipts for seven years, and keep your peace of mind.