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The recommended practice for clients regarding documentation is to retain all tax records and supporting documents for at least 7 years. This duration aligns with the general time frame in which the IRS and state tax authorities can initiate audits or require substantiation of tax returns. Keeping comprehensive documentation helps support the accuracy of filed tax returns and provides necessary evidence in case of an audit.

Various records that should be maintained include income statements, receipts, invoices, bank statements, and any other relevant correspondence. Maintaining thorough documentation not only prepares clients for potential audits but also enables them to claim deductions or credits confidently.

This proactive approach underscores the importance of meticulous record-keeping rather than the riskier practice suggested by the other options, which either limit the type of documents retained or assume a low likelihood of audit occurrence. Proper preparation can save clients considerable time and stress in case they face scrutiny from tax authorities.