Bryan T. Camp (Texas Tech), The New Forever Rule for Record Retention, 190 Tax Notes Fed. 2183 (Mar. 30, 2026):

W]hen people ask me how long they must keep their tax records, they are in effect asking how long they will run the risk of audit. My traditional answer had been three years. That is because section 6501(a) provides a general three-year rule of closure: Once a taxpayer files a return, the IRS has three years to either assess a tax or bring suit in court. After that, the tax year is closed.

Three years is no longer my answer. In Murrin v. Commissioner, [158 F.4th 527 (3d Cir. 2025),] the Third Circuit aligned itself with the Tax Court, holding that taxpayers cannot rely on the general three-year period of limitations if anyone else is involved in preparing their tax return. 

That is because section 6501(c)(1) provides that, “in the case of a false or fraudulent return with the intent to evade tax,” the IRS has an unlimited time to assess. The Third Circuit wrote: “The obvious construction of the statutory text is that the intent to evade tax must be present in a false or fraudulent return, irrespective of who possesses that intent” (emphasis added). Thus, “whether a taxpayer, accountant, lawyer, or tax preparer evidenced such intent is beside the point.” After Murrin, I must now advise taxpayers to keep their records indefinitely if anyone other than the taxpayer has participated in the preparation of the return.

This article explains how Murrin has changed the law and why it means that taxpayers can no longer predict if and when the IRS will audit a return filed with help from a third party. They must keep their records . . . forever.

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