Tax records are official documents that provide a detailed account of an individual's or business's financial information related to taxes. These records typically include income statements, deductions, credits, and any taxes owed or refunded. They are essential for preparing tax returns and can be used to verify income and expenses during audits. Maintaining accurate tax records is important for compliance with tax laws and regulations. Individuals and businesses should keep these documents organized and accessible for several years, as they may be required for future reference or in case of an audit by the Internal Revenue Service (IRS) or other tax authorities.