Tax returns are audited by the Internal Revenue Service within 3 years. Keep records that document tax deductions for this time period.  However, some experts recommend you keep records that document tax deductions for up to 7 years.   In some situations such as under-reporting of more than 25% of income, the IRS can collect for up to 6 years.  If fraud is involved or a return is not filed, there is no limit on when a return may be audited.  Keep records related to property values, home improvements, etc. until the property is sold.