Current through Vol. 42, No. 1, September 16, 2024
(a)
Required records. The
following records constitute a minimum requirement for the purposes of the
Sales Tax Code for vendors selling tangible personal property:
(1) Sales journal or log of daily sales in
addition to cash register tapes and other data which will provide a daily
record of the gross amount of sales.
(2) A record of the amount of merchandise
purchased. To fulfill this requirement, copies of all vendors' invoices and
taxpayers' copies of purchase orders must be retained serially and in sequence
as to date.
(3) A true and complete
inventory of the value of stock on hand taken at least once each
year.
(b)
Microfilm/microfiche records. Records may be microfilmed or
microfiched as long as such microfilmed and microfiched records are authentic,
accessible and readable, and the following requirements are fully satisfied:
(1) Reproductions of all original records
must be produced upon request by the Commission or its authorized
representatives.
(2) Appropriate
facilities are provided for preservation of the microfilm or microfiche for
periods required.
(3) Microfiche or
microfilm records are indexed, cross-referenced and labeled to show beginning
and ending numbers or beginning and ending alphabetical listing of documents
included, and are systematically filed to permit the immediate location of any
particular record. A posting reference must be on each document and a control
log or catalog of such documents must be maintained.
(4) Taxpayers must make available a
reader/printer upon request by Commission to review records.
(5) When displayed or reproduced on paper,
the material must exhibit legibility and readability. 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
recognized as words or complete numbers.
(6) The taxpayer retains the microfilm or
microfiche copies so long as the contents thereof may be material in the
administration of any audit by the Commission.
(c)
Automated systems. An
Automated Data Process Systems (ADP) tax accounting system may be used to
provide the records required for the verification of tax liability. Such ADP
system must include a method of producing legible and readable records which
will provide the necessary information for verifying such tax liability. The
following requirements apply to any taxpayer who maintains any such records on
an ADP system:
(1)
Recorded or
reconstructible data. ADP records shall provide an opportunity to trace
any transaction back to the original source or forward to a final total. If
detailed printouts are not made of transactions at the time they are processed,
the systems must have the ability to reconstruct these transactions.
(2)
General and subsidiary books of
account. A general ledger with source references and subsidiary ledgers
shall be written out to coincide with financial reports for tax reporting
periods.
(3)
Supporting
documents and audit trail. The audit trail shall be designed so that the
details underlying the summary accounting data such as sales invoices, purchase
invoices, credit memoranda and like documents, are readily available to the
Department upon request.
(4)
Program documentation. A description of the ADP portion of the
accounting system shall be made available. The statements and illustrations
describing the system and scope of ADP operations being performed shall be
sufficiently detailed to indicate the application being performed and the
procedures employed in each application. Controls used to insure accurate and
reliable processing should be noted along with the dates and nature of
important changes.
(5)
Data
storage media. Adequate record retention facilities shall be available
for storing tax and ADP records required for verification of tax liability.
Records required would include data prepared for input in processing accounts
payable, accounts receivable or any purchase or sales journal entries necessary
for bookkeeping and tax reporting purposes. [See: 68 O.S. §
1365
]
Amended at 11 Ok Reg
3521, eff 6-26-94
