Conference call with IRS representatives concerning the need for record retention agreements for machine-sensible
71-20 held that punched cards, magnetic tapes, disks and other machine-sensible
data media used for recording, consolidating and summarizing accounting transactions and records in a taxpayer's automatic data processing (ADP) system were records within the meaning of Sec.
During an IRS examination, the taxpayer must be able to retrieve and reproduce electronically stored and machine-sensible
books and records (including hard copies, if requested).
computations based upon machine-sensible
records can only be reasonably verified or recomputed by use of a computer, as in LIFO inventory valuations, or
TEI continues to meet with the IRS concerning the need for record retention agreements for machine-sensible
files under Rev.
98-25 requires taxpayers to retain electronic or machine-sensible
records used to record the business activities of a venture.
On behalf of Tax Executives Institute, I am pleased to respond to your request for comments on LMSB's proposal for obtaining records limitation agreements in respect of machine-sensible
files under Rev.
71-20 establishes that all machine-sensible
data are records within the meaning of Sec.
98-25 to update the guidance in respect of machine-sensible
records," TEI said.
91-59, are effective for machine-sensible
records for tax years after 1997.
Indeed, TEI has had a long involvement in the development and refinement of the IRS's record-retention rules in respect of machine-sensible
The Service makes clear that hard-copy records are not a substitute for the machine-sensible