In this video, I recommend keeping tax returns and supporting documents (receipts, invoices, bank statements) for at least seven years since the IRS can audit up to three years back normally, six years for significant underreporting, and seven years for fraud cases. For real estate transactions, I suggest keeping renovation receipts and major repair records until you sell the property (and seven years after) as these affect your cost basis and capital gains calculations. Although digital files don't take up much space, so it's safest to keep PDF versions of your tax returns indefinitely, especially for situations involving retirement accounts or estate planning.
