Guide

Recordkeeping for resellers: what to keep and for how long

Records are how you prove your sales, costs and tax filings. This guide lists what to keep and how long, using IRS and Illinois sources.

General information only, not legal or tax advice. I am not a lawyer, a CPA or an accountant. Flipfiled does not prepare tax returns or give legal advice. This page explains what government sources say. Rules, rates and fees change, so confirm with the agency. The dollar examples are made up to show the math.

The short version

• Good records are how you prove what you reported. They also make tax time, sales tax filing and bank or insurance questions much easier.
• The IRS default for income tax records is 3 years, with longer periods in specific cases. Employment tax records: at least 4 years.
• For a resale certificate (CRT-61), IDOR says the seller keeps it for at least 3.5 years.
• When in doubt, keep it longer. Your insurance company or creditors may require longer, the IRS notes.

How long to keep records

The IRS counts the 3 years from when you filed the return. Sources: IRS: How long should I keep records? (opens in a new tab); IDOR: CRT-61 instructions (opens in a new tab). Illinois may have other retention rules for other tax types. Ask the Department of Revenue.

What a reseller should keep

• Sales records: platform reports, payout summaries, point-of-sale reports and any 1099-K you receive (see Form 1099-K).
• Purchase records: receipts and invoices for inventory, supplies, shipping and fees. See business expenses and cost of goods sold.
• Inventory records: what you bought, what it cost, when it sold. A SKU system makes this easier.
• Resale certificates: the CRT-61s you give to suppliers, and any you receive. See CRT-61.
• Sales tax filings: every ST-1 and confirmation. See how to file.
• Bank and card statements from your business account, kept separate from personal.
• Mileage and travel: a simple log of date, miles, where you went and why. Ask your CPA what the IRS requires for your situation.
• Home or space costs if you claim any. Ask your CPA first.
• Business documents: Articles of Organization, operating agreement, EIN letter, licenses, assumed name certificate and each year’s LLC annual report.
• Contractor and payroll records: W-9s, invoices and any 1099s; see hiring help.
• Insurance policies and claims. See insurance.

Simple habits

1. Pick one folder system, on paper or digital, and use it every week.
2. Photograph or scan paper receipts the day you get them. Thermal receipts fade.
3. Keep a backup in a second place.
4. Name files so you can find them: date, vendor and amount.
5. Reconcile your bank account monthly.
6. Keep records longer when you are unsure.

Why it matters: a made-up example

You sell $10,000 of goods in a year and spent $4,500 on inventory. A year later a notice asks you to support your numbers. With purchase receipts, platform reports and bank statements, you can show the $4,500. Without them, you may have trouble proving it, and your reported profit could be questioned. That is the practical reason for records. What the IRS or IDOR would do in a real case depends on the facts.

Questions for a CPA

• What records do I need for the deductions I plan to claim?
• How long should I keep each type of record?
• Is my mileage log detailed enough?

I am not a CPA or an attorney

This page is general information, not tax or legal advice. Flipfiled does not prepare tax returns. Retention rules differ by situation, so confirm with the IRS, Illinois Department of Revenue or a CPA. Checked Oct 30, 2026.