Rev. Rul. 56-547

The Internal Revenue Service has been asked whether Revenue Ruling 56-260, C. B. 1956-1, 555, relating to the acceptability of microfilm reproductions of records of companies liable for manufacturers excise taxes on gasoline and lubricating oil, is applicable to taxpayers liable for retailers and manufacturers excise taxes generally.

Consistent with the policy stated in Revenue Ruling 56-260 and I. T. 3866, C. B. 1947-2, 68, it will be permissible for taxpayers, liable for retailers and manufacturers excise taxes under chapter 31 and 32 of the Internal Revenue Code of 1954, to retain only microfilm reproductions of supporting records of details, such as production records, purchase and sales invoices, vouchers, and exemption certificates, and other documents supporting tax-free and other nontaxable transactions, provided: (1) the taxpayer will retain microfilmed copies so long as the contents thereof may become material in the administration of any internal revenue law; (2) the taxpayer will provide appropriate facilities for preservation of the films and for the ready inspection and location of the particular records, including a projector for viewing the records, in the event inspection is necessary for tax purposes; and (3) the taxpayer will be ready to make any transcriptions of the information contained on the microfilm which may be required. However, in accordance with the policy stated in the above-mentioned published rulings, it will not be permissible for taxpayers to retain only microfilm reproductions of general books of accounts, such as cash books, journals, voucher registers, ledgers, etc. Compare Rev. Rul. 56-11, C. B. 1956-1, 713.