Tax Type
Corporation Income Tax
Description
Microfilm and microfiche records
Topic
Returns/Payments/Records
Date Issued
08-18-1988
August 18, 1988
Dear**********************
This is in response to your letter of June 17, 1988, concerning the use of microfilm and microfiche for official recordkeeping for state corporation income tax audit purposes.
Virginia does not follow IRS Revenue Ruling 75-265 or the provisions set forth in IRS Revenue Procedures 75-33. However, we will permit the use of microfilm and microfiche for general books of account and supporting records of detail under certain conditions.
The microfilm and microfiche must be maintained in a manner such that all data are easy to obtain, read, and print. The taxpayer must maintain a detailed index of all data and must arrange the index in a manner which permits the immediate location of specific records. The taxpayer must make available to the department a viewing apparatus and printer for the location, reading, and reproduction of any record or records being maintained on microfilm or microfiche. The taxpayer must provide for the appropriate preservation and maintenance of all records making them readily available for as long as their contents may become material in the administration of the state income tax law.
If these conditions are not met the auditor may reject the microfilm and/or microfiche.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner