IRS Audit Checklist: Documents You Should Keep

If the IRS asks questions, speed and credibility come from one thing: records you can produce in order. This checklist is organized the way an examiner thinks: income first, then basis and adjustments, then credits and payments, then anything unusual (crypto, rentals, equity comp).

TL;DR

• Keep source forms (W-2, 1099, K-1, 1098) plus statements when the form is incomplete (broker supplemental info, RSU release reports).
• Keep bank and brokerage PDFs for the full tax year, not just December.
• For every sale of stock, retain acquisition date and cost basis documentation until the statute runs.
• Store a one-page reconciliation that maps each major 1040 line to a file name (spreadsheet is fine).

Income: prove what hit the return

Topic	What to keep
Wages	W-2 (all jobs), final pay stubs if correcting errors
Interest / dividends	1099-INT, 1099-DIV, year-end broker statements
Stock sales	1099-B, Form 8949, trade confirmations for basis issues
Crypto	Exchange CSVs, Form 1099-MISC/B if issued, wallet logs for transfers
Self-employment	Invoices, 1099-NEC, bank deposits, expense receipts tied to Schedule C categories
Rentals	Lease, rent deposits, expense receipts, prior depreciation schedules

Document proof callout: W-2 Box 1 should match what you used for wages on Form 1040 Line 1 (subject to normal adjustments your software applies). If you had multiple W-2s, keep a simple table: Employer, Box 1, sum.

Basis and adjustments: where audits find dollars

Examiners love Schedule D and Form 8949 because small basis errors swing tax a lot.

• RSUs / ESPP: Employer stock plan statements, W-2 boxes that include ordinary income from vesting, 1099-B, supplemental equity reports.
• Wash sales: Monthly broker statements if your 1099-B adjusts for wash sales across accounts at the same broker.

Credits: eligibility evidence

For credits (child tax credit, education credits, EITC where applicable), keep:

• SSNs and relationship docs if the IRS questions dependents (school records, medical, court orders as applicable).
• Form 1098-T for education credits.
• 1095-A and premium tax credit reconciliation if you had Marketplace coverage.

Payments and withholding

• W-2 Box 2 federal withholding, 1099 withholdings, estimated tax confirmations (Form 1040-ES vouchers or EFTPS confirmations).

Digital hygiene that saves you

1. One folder per tax year: YYYY_Federal with subfolders Income, Investments, Home, Business, Notices.
2. File names: 2025_1099-INT_Chase_xxxx.pdf, not scan123.pdf.
3. Cloud backup with version history (accidental deletes happen during April rush).

Worked example: “We are examining Schedule C”

You receive an IRS letter listing three expense categories. Your response packet includes:

1. Bank statements showing business income deposits matching Schedule C Line 1.
2. Receipts or card statements for each disputed expense category.
3. Mileage log if vehicle expense is questioned (date, miles, business purpose).

FAQ

How long should I keep records?
Federal rules often allow 3 years from filing for assessment in normal cases, 6 years if you understate income by more than 25%, and longer for certain items (e.g., basis on sold property, unfiled returns, fraud). When in doubt, keep basis records until you dispose of the asset and the return year is closed.

Do scans count?
Yes, if legible. Keep originals of anything with an embossed seal if you have them.

What if I used a preparer?
Keep your signed Form 8879 or filing acknowledgment, organizer, and the source documents you gave them. You are responsible for what is filed.

How to act on this today

Use BasilTax verify to connect each major line on your return to the exact PDF and field that supports it before an examiner calls. Prefer to organize next year’s file as you go? Start free and upload documents as they arrive.

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Educational content only—not individualized tax advice.