The regulation stipulates that the retention period cannot exceed three years, unless the reporting body proves that a longer period is necessary, or if the records concern medical, medical or tax records. Retention periods of more than three years may well be justified; However, this should represent a very small number of records, perhaps less than 10% of the records retained by most organizations. Most states have laws and record-keeping requirements. Second, it was argued that most tax records are only required to be retained for three years (plus an extended audit period) under the Federal Internal Revenue Code.5 Since tax records also make up the majority of records retained by most organizations for long periods of time, three years appears to be the de facto retention period for most records. It therefore makes sense to reduce paperwork and effectively manage an organization to retain most, if not all, records for the same three-year retention period (with a few exceptions). * Tax records do not need to be kept forever, but in the future, situations may arise where documents may prove useful. A retention period (linked to a retention schedule or retention program) is an aspect of records and information management (IRM) and the records lifecycle that specifies how long information must be retained or “retained” in any format (paper, electronic or otherwise). Retention periods vary depending on the type of information, content, and various other factors, including internal organizational requirements, regulatory requirements for inspections or audits, statutory statute of limitations, litigation involvement, and tax and financial reporting requirements, and other factors defined by local government agencies. regional, state, national and/or international. become.

[1] [2] All records between different types have their own specific retention periods. Many document managers are responsible for researching and analyzing the legal requirements for documents managed by their organizations. The process of conducting this legal research was discussed in a previous article.1 This article discusses the analysis of one of the most difficult legal issues related to record retention – laws that require record keeping but do not stipulate a retention period, and situations where no requirement is found even after extensive research. Reasonableness refers to the ability of a specified and applied retention period to effectively defend the record and its eventual destruction or adherence during judicial review or other review. For permanent records, scanning documents can be a good solution. Storing paper documents for a number of years will take up space. An efficient and secure way to store your documents while saving space is to use an electronic document management system. We can also help you find a document scanning company that can convert all these paper documents into electronic records. Each industry has its own regulations. Here we focus on just three major industries: accounting, medicine, and law. In many cases, documents are too secure to be recycled or archived. Shredding may be necessary to properly dispose of paper files.

Improper destruction of records may result in fines and other penalties set by federal and state laws. Shred Nations can help you find a shredder contractor that meets all your document retention needs. Track your retention periods today with Record Storage & DMS services from Record Nations. At the other extreme, there are records whose continued retention serves no useful business purpose and may in fact unnecessarily expose the company to storage costs and legal liability, such as: In 2002, the Sabarnes-Oxley Act was passed, which imposed many restrictions on a company`s handling of records. It defines “records” broadly as anything related to the business that can be represented by words or numbers, meaning that many records need to be managed. Once records have passed their retention period, they must be shredded and destroyed. If you want to experience shredding for yourself, mobile shredding is a good option, while off-site shredding is also available for large projects. A records retention program involves the systematic storage, tracking, and destruction of business documents and records. It`s important to be careful not to shred or destroy the right data set, but it can also lead to problems.

In most cases, each record will eventually exceed its retention period when it becomes important to make sure to clean up the clutter. The more sensitive records you have stored, the more sensitive information there is to lose. In the event that no actual legal requirement has been identified during the research, the assumptions used to set the three-year legal retention period should be documented and kept together with the legal research actually carried out. If the retention period of records is challenged by judges or administrative authorities, the organization can clearly demonstrate good faith in trying to comply with the law. Companies need a well-established and regularly updated retention schedule to ensure that information is retained for as long as operationally and legally necessary, and that other information is routinely disposed of based on the record disposal plan. Record retention refers to the methods and practices that organizations use to retain critical information for a period of time required for administrative, financial, legal, and historical purposes. It applies both to paper documents and to the retention of electronic documents such as Word documents and spreadsheets. There are four types of legal requirements for record keeping that are typically encountered: As a business owner, you probably have various documents stored such as tax returns, personal records, and bank statements. Unfortunately, there is no strict retention rule that applies to all types of records, which means you need to categorize your files and create a document retention policy (DRP). For many industries, document retention is critical to business security. Every company should have a retention policy that describes the lifespan of its records, from creation to destruction. Guidelines have been established on the retention period of the various documents.

There are strict retention periods that every company must adhere to. Here are some common retention periods for common business records: Sarbanes-Oxley has had a significant impact on record retention requirements, including: Some states, including Texas, Illinois and North Dakota, have adopted this standard. It stipulates that companies must keep records that do not fall within the statutory retention periods for at least three years. The laws clearly state how long documents must be retained. These laws help you minimize the risk of data theft and breach. How important is it to have a document retention strategy? A document retention policy that is not consistently applied is not an effective safeguard against allegations of malicious destruction of documents. Suspicion is aroused by the sudden and vigorous implementation of a policy that until then had been implemented only sporadically. In addition, the selective destruction of documents pursuant to a subpoena could expose a company to criminal liability for conspiracy to defraud government, section 18 of section 371 of the United States Code, and obstruction of justice.

Each state has established retention requirements for medical records. All medical companies should review their state-specific standards. However, here are the retention periods recommended by AHIMA: Generally, document retention policies should answer the following questions: An electronic document management system (DMS) provides version control, remote retrieval, OCR and indexing, making it easier for organizations to track record retention and retrieve documents remotely. So make sure you keep up. Finally, if, after a reasonable search, no retention obligations and retention periods of the records have been found, it is reasonable to assume that it is not necessary to comply with a statutory retention period. The record retention period can then be set just long enough to meet operational (user), tax/tax, or historical requirements. Retention policies are clearly an important consideration for many industries and businesses. A retention strategy is just the first step in managing all your documents.

Finally, a document is reaching the end of its life and must be disposed of properly. Guidelines have also been established for the handling of these files. In Illinois, the State Records Act governs records and how to dispose of them. Powerful RM or enterprise content management solutions must be able to monitor records throughout their lifecycle. In this case, employees can obtain information about their information, status, retention periods, and even assigned disposition data. When you classify information about legal and corporate retention requirements and define their retention periods, you can define document retention policies that comply with your current policies and regulations. Second, based on the above discussion, the records could be retained for a reasonable period of three years. If no record-keeping requirements have been found after a reasonable search effort, the three-year retention period may be considered, as a three-year retention period still appears to be a reasonable period.

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