How long should a business keep tax records?

Tax Record Retention Requirements for Businesses in New Hampshire

Maintaining proper tax records is essential for compliance and efficient business operations in New Hampshire. As of 2026, businesses should follow these guidelines for how long to keep tax records.

Recommended Retention Period

• Federal Tax Records: Retain all federal tax documents, including income tax returns, payroll tax records, and supporting documents, for at least 7 years. This timeframe covers the IRS statute of limitations for audits and potential claims.
• State Tax Records: New Hampshire requires businesses to keep tax records related to Business Profits Tax, Business Enterprise Tax, and other state taxes for a minimum of 6 years. This period aligns with the New Hampshire Department of Revenue Administration's audit window.

Types of Records to Keep

• Income and expense documentation
• Payroll records and employee tax filings
• Sales and use tax returns and supporting invoices
• Business licenses and permits related to tax compliance
• Bank statements and canceled checks

Operational Tips

• Implement a Recordkeeping System: Use digital or physical filing systems to organize tax records by year and tax type for easy retrieval during audits or reporting.
• Automate Backups: Automate regular backups of electronic tax records to avoid data loss and ensure compliance with retention policies.
• Coordinate with Bookkeeping: Align tax record retention with bookkeeping and payroll record retention schedules to maintain consistency and operational efficiency.
• Review Annually: Conduct an annual review of stored records to securely dispose of documents beyond the retention period, reducing storage costs and maintaining data privacy.

By adhering to these retention periods and operational practices, New Hampshire businesses can maintain compliance, simplify audits, and optimize record management.