Which of the following is true about document retention requirements per the IRS statute of limitations?
A) Federal legislation requires documents to be retained for two years after the employee's termination.
B) Payroll records must be maintained for three years after termination.
C) Union employees' records must be retained for ﬁve years after termination.
D) State legislation requires records to be retained for a minimum of eight years after

Question

Quizplus · Accepted Answer

According to the IRS statute of limitations, payroll records must be maintained for three years after termination. It is important to note that this is a minimum requirement and some states may require longer retention periods. The other options are not correct as there is no federal or state legislation requiring a two-year or five-year retention period after termination for all employee records, or a minimum of eight years for records.

Which of the Following Is True About Document Retention Requirements