IRS now accepting taxpayer records in electronic format from Intuit and Peachtree
28 Oct IRS now accepting taxpayer records in electronic format from Intuit and Peachtree
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by John R. Dundon II
The Internal Revenue Service has started accepting taxpayer records in electronic format from small businesses using Intuit’s QuickBooks and Sage’s Peachtree accounting software for audits and examinations.
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.
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), 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.
The IRS added that it is not endorsing, recommending or favoring any specific commercial products.
