IRS Requirements for Computerized Tax Records

IRS Requirements for Computerized Tax Records

WANADA dealer members need to recall that the IRS has certain requirements concerning the retention of computerized accounting records. Computerized records include all accounting and financial systems that process all or part of the dealer's transactions, records, or data by other than manual methods. Systems include microcomputer systems, data base management systems (DBMS) and all systems using electronic data interchange. Punched cards, magnetic tapes, disks and other machine-sensible media used for recording, consolidating, and summarizing accounting transactions and records in a dealer's computer system are records for purposes of IRS rules of engagement. The IRS requires that dealers maintain these records for as long as their contents may be material in administering any tax law. This requirement applies to any record covered by a tax provision having unique or specific recordkeeping requirements.