Rev. Proc. 75-33

Section 1. Purpose.

The purpose of this Revenue Procedure is to set forth the conditions under which microfilm (including microfiche) reproduction of general books of account, such as cash books, journals, voucher registers, ledgers, etc., and supporting records of detail will be considered books and records within the meaning of section 6001 of the Internal Revenue Code of 1954.

Sec. 2. Background.

.01 Rev. Rul. 75-265, page 460, holds that the microfilm (including microfiche) reproduction of general books of account will be considered books and records within the meaning of section 6001 of the Internal Revenue Code of 1954 when such books and records are in accordance with this Revenue Procedure.

Sec. 3. Procedure.

.01 Taxpayers having an automatic data processing accounting system that includes the ability to produce records on microfilm directly on-line from the computer or off-line from magnetic tape and taxpayers having records photographed onto microfilm from original documents, "hard copy" printouts, etc. wishing to retain general books of account solely on microfilm must submit in writing to their District Director a description of their micrographic system.

.02 The description of a taxpayer's micrographic system should include specific information as to how the system conforms with the requirements set forth in this Revenue Procedure.

.03 With respect to a micrographic system service sold or provided by a data processing service activity, approval of such system shall be granted in writing to the activity by the District Director of the district in which such service activity maintains its principal place of business provided the requirements set forth herein are satisfied. Copies of the approval should be provided by the service activity to the taxpayer-users who may consider such notice of approval as acceptance of the system by the Internal Revenue Service within the intent of this Revenue Procedure.

.04 Permission to retain general books of account solely on microfilm will be granted only after the Service reviews the taxpayer's micrographic system and the following requirements are met:

1. Microfilm stock to be used for preservation of documents (as set forth in this Revenue Procedure) shall be safety-base permanent record film, as specified in American National Standard Institute (ANSI) PH Series: PH 1.25 "Specifications for safety Photographic Film."

(a) The required archival record on microfilm shall be permanent record film as specified in ANSI PH 1.28. "Specifications for photographic film for archival records, Silver Gelatin-type, on Cellulose Ester Base" or PH 1.41 "Specifications for photographic film for archival records, Silver Gelatin-type, on Polyester Base."

(b) In addition to the archival record the taxpayer may provide a working copy of the microfilm. The working copy may be silver, diazo or vesicular type on a safety-base of cellulose ester or polyester material.

2. The following standards will relate to the microfilming of records:

(a) On negative microfilm of paper documents, the background density shall be between 0.9 and 1.3. On negative microfilm produced by Computer Output Microfilm (COM), the background density shall be a minimum of 1.1. These requirements apply to both master microfilm and duplicates (copies).

(b) On positive microfilm, both from paper documents and COM produced, the background density shall be between 0.04 and 0.40.

(c) For paper document filming, a minimum resolution of 90 lines per millimeter shall be obtained.

(d) The master microfilm shall be processed so that the processed film meets the standards as set forth in ANSI PH 4.8. Archival permanence is required for general books of account. Commercial permanence will be considered adequate for other documents.

3. A detailed index of all microfilmed data shall be maintained and arranged in such a manner as to permit the immediate location of any particular record.

4. Taxpayers will provide for appropriate preservation and maintenance of microfilmed records, making them readily available for as long as the contents thereof may become material in the administration of any Internal Revenue law. Microfilmed records stored and maintained in accordance with the standard set forth in ANSI PH 5.4 will be considered adequate. Long-term storage is required for microfilmed general books of account. Short-term storage will be considered adequate for other microfilmed records.

5. Taxpayer will make available upon request by the Service a reader-printer for the ready reading, location and reproduction of any record or records being maintained on microfilm.

6. The following standards will relate to the reader-printers made available to the Service:

(a) The equipment shall be in a clean condition and in good working order.

(b) Maintenance of this equipment shall have been in accordance with the manufacturer's specifications.

(c) The equipment shall provide safety features in accordance with UL standards (UL approval not required) and have adequate heat and temperature controls to prevent the damaging of the microfilm being viewed.

(d) The equipment shall have the capability of displaying and printing an entire frame.

(e) On a frame-by-frame basis, full size reproduction of documents, and three-quarter size reproduction of Computer Output Microfilm shall be considered adequate.

(f) The printing capability shall provide for image reproduction of black lines on a lighter background.

(g) This display device shall provide for right reading with the top of the material appearing at the top of the screen.

.05 Microfilm may be used for supporting records of details, such as payroll records, cancelled checks, invoices, vouchers, etc., without permission. However, in order for microfilmed supporting records to be deemed adequate, requirements 1-6 above shall be met.

Sec. 4. Effect On Other Documents

Microfilm books of account will add another class of records to those described in Rev. Proc. 64-12, 1964-1 (Part 1) C.B. 672. Microfilm is not to be considered machine-sensible media as described in Rev. Rul. 71-20. Rev. Proc. 64-12 is hereby amplified.