December 3, 2025 3:12 AM PST
For individuals and businesses, keeping tax records is crucial. Typically, tax returns should be retained for at least three years, but if income was overstated by more than 25%, keep them for six years. Loss claims or bad debts should be kept for seven years, and important financial documents like payroll or property records may need up to ten years. For businesses involved in international operations, such as sea freight from Pakistan to USA, maintaining proper tax and shipping records is especially important for audits, customs compliance, and financial verification. Digital copies are fine as long as they are clear and easily accessible.