Alternative storage media

(a)(1) 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 part to microfilm, microfiche, or other storage-only imaging systems and may discard the original hard-copy documents, provided the conditions of this section are met.

(2) Documents which may be stored on these media include, but are not limited to:

(A) General books of account;

(B) Journals;

(C) Voucher registers;

(D) General and subsidiary ledgers; and

(E) Supporting records of details, such as:

(i) Sales invoices;

(ii) Purchase invoices;

(iii) Exemption certificates; and

(iv) Credit memoranda.

(b) Microfilm, microfiche, and other storage-only imaging systems shall meet the following requirements:
(1)(A) Documentation establishing the procedures for converting the hard-copy documents to microfilm, microfiche, or other storage-only imaging system must be:

(i) Maintained; and

(ii) Made available on request.

(B) Such documentation shall, 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;

(2) Procedures must be established for:

(A) The effective identification, processing, storage, and preservation of the stored documents; and

(B) Making them available for the period they are required to be retained under 26 CAR § 9-110;

(3) Upon request by the Secretary of the Department of Finance and Administration, a taxpayer must provide facilities and equipment for reading, locating, and reproducing any documents maintained on:

(A) Microfilm;

(B) Microfiche; or

(C) Other storage-only imaging system;
(4)(A) When displayed on such equipment or reproduced on paper, the documents must exhibit a high degree of legibility and readability.

(B) 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.

(C) 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 systems must be maintained and arranged in a manner that permits the location of any particular record; and

(6) There is no substantial evidence that the microfilm, microfiche, or other storage-only imaging system lacks authenticity or integrity.