Welcome Guest. Register Now!  


CPA Forums CPA related topics.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-31-2010, 06:57 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
IRS Begins Accepting Taxpayer Records in Electronic Format

Per the IRS, "Business owners and tax professionals have been advocating that the IRS begin accepting taxpayer records in electronic format instead of continuing to use traditional paper books and records for audits. The IRS Small Business/Self-Employed Examination Division is responding to those wishes expressed in tax practitioner focus group interviews conducted at the 2008 Nationwide Tax Forums and from other stakeholders.

The IRS has recently completed training for revenue agents on QuickBooks® Premier Accountant Edition 2010 software. Approximately 1,100 agents were trained and are now being encouraged to request and accept taxpayers’ QuickBooks files, as appropriate. The IRS is also able to accept electronic records from Peachtree® accounting software. Electronic files should be provided on a CD, DVD, or flash/jump drive to ensure security of the files. E-mail should not be used to transmit the electronic records.

Obtaining the taxpayer's accounting records in electronic format provides significant advantages:

1. Reduces taxpayer burden because taxpayers don’t have to print records stored electronically.
2. Provides a complete set of the taxpayer’s accounting records, decreasing the number of items included in the initial document request and follow-up requests.
3. Increases efficiency of the revenue agent’s analysis and testing of the books and records, resulting in faster audit resolution.

The legal authority for requesting a taxpayer's QuickBooks backup files and accounting records in electronic format is based on IRC Section 6001, Regulation 1.6001-1(a) and -1(e) (PDF), Revenue Ruling 71-20 and Revenue Procedure 98-25. Rev. Proc. 98-25 does not prevent or exempt a taxpayer from providing electronic records, if such records exist.

Electronic information management has become the standard in business and will now be used to enhance the examination process. The ability to conduct audits using these software options will be available on an increasing basis as revenue agents begin to work with the new software.

It is anticipated that this new audit tool will increase the speed and efficiency of field examinations, reduce taxpayer burden, and be a positive development for taxpayers, their representatives and the IRS."

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IRS proposes elimnation of Paper Coupons Next Year for Corporation Tax Payments & Extends Electronic Payment via EFTPS! TaxGuru C-Corporation 0 10-13-2010 10:06 AM
How Long should a Taxpayer keep his Corporate Tax Records? TaxGuru C-Corporation 0 07-02-2009 10:23 AM
IRS Accepting Applications for Low Income Taxpayer Clinic Grants Samatg Tax News 0 05-26-2009 06:04 PM
Tax Credit for Ford Hybrids Begins Phase-Out Samatg Tax Credit 0 04-16-2009 10:43 PM
What are the IRS Criteria for accepting a late S Corporation Election? TaxGuru S-Corporation 0 07-21-2008 12:41 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.