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(a) In conjunction with meeting the requirements of 19 RCNY § 26-04, a taxpayer may create files solely for the use of the Department. For example, if a database management system is used, it is consistent with these rules for the taxpayer to create and retain a file that contains the transaction-level detail from the database management system and that meets the requirements of 19 RCNY § 26-04. The taxpayer should document the process that created the separate file to show the relationship between that file and the original records.
(b) A taxpayer may contract with a third party to provide custodial or management services of the records. Such a contract must not relieve the taxpayer of its responsibilities under these rules.
(a) For purposes of storage and retention, taxpayers may convert hard copy documents received or produced in the normal course of business and required to be retained under this rule to microfilm, microfiche or another storage-only imaging system and may discard the original hard copy documents, provided the conditions of this section are met. Documents that may be stored on these media include, but are not limited to general books of account, journals, voucher registers, general and subsidiary ledgers, and supporting records of details, such as sales invoices, purchase invoices, exemption certificates and credit memoranda.
(b) Microfilm, microfiche and other storage-only imaging systems must meet the following requirements:
(1) Documentation establishing the procedures for converting the hard copy documents to microfilm, microfiche or another storage-only imaging system must be maintained and made available on request. Such documentation must, at a minimum, contain a sufficient description to allow an original document to be followed through the conversion system as well as internal procedures established for inspection and quality assurance. There must be no substantial evidence that the microfilm, microfiche or other storage-only imaging system lacks authenticity or integrity.
(2) Procedures must be established for the effective identification, storage, and preservation of the stored documents and for making them available for the period they are required to be retained under 19 RCNY § 26-07.
(3) Upon request by the Department, a taxpayer must provide facilities and equipment for reading, locating, and reproducing any documents maintained on microfilm, microfiche or other storage-only imaging system.
(4) When displayed on such equipment or reproduced on paper, the documents must exhibit a high degree of legibility and readability. For this purpose, legibility is defined as the quality of a letter or numeral that enables the observer to identify it positively and quickly to the exclusion of all other letters or numerals. Readability is defined as the quality of a group of letters or numerals being recognizable as words or complete numbers.
(5) All data stored on microfilm, microfiche or other storage-only imaging system must be maintained and arranged in a manner that permits the location of any particular record.
(c) Any imaging system meeting the requirements of an electronic storage system under Rev. Proc. 97-22, as promulgated by the Internal Revenue Service, must be deemed to satisfy the requirements of this section, provided it is able to accept date information input, provide date output and store dates before, on and after January 1, 2000 correctly and without ambiguity.