How long must an auctioneer keep tax records after an auction?

An auctioneer is required to keep tax records for a period of three years after the auction due to the auditing timelines set by the IRS and Indiana state regulations. This duration allows for adequate review and ensures that the records are available if needed for tax purposes. The three-year retention period is standard as it aligns with the general policy that the IRS has for audits; typically, they can audit tax returns filed within the last three years. Therefore, keeping records for this time frame ensures compliance and protects the auctioneer in case of any inquiries or audits regarding their financial transactions. This practice is fundamental to maintaining transparency and accuracy in financial reporting within the auction industry.