(a)

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

   1. (A) General books of account;
   2. (B) Journals;
   3. (C) Voucher registers;
   4. (D) General and subsidiary ledgers; and
   5. (E) Supporting records of details, such as:

(i) Sales invoices;

1. (ii) Purchase invoices;

   1. (iii) Exemption certificates; and

      1. (iv) Credit memoranda.

(b) Microfilm, microfiche, and other storage-only imaging systems shall meet the following requirements:

1. (1)

   1. (A) Documentation establishing the procedures for converting the hard-copy documents to microfilm, microfiche, or other storage-only imaging system must be:

      1. (i) Maintained; and
      2. (ii) Made available on request.
   2. (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. (2) Procedures must be established for:

   1. (A) The effective identification, processing, storage, and preservation of the stored documents; and
   2. (B) Making them available for the period they are required to be retained under 26 CAR § 9-110;

3. (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:

   1. (A) Microfilm;
   2. (B) Microfiche; or
   3. (C) Other storage-only imaging system;

4. (4)

   1. (A) When displayed on such equipment or reproduced on paper, the documents must exhibit a high degree of legibility and readability.
   2. (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.
   3. (C) Readability is defined as the quality of a group of letters or numerals being recognizable as words or complete numbers;
5. (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. (6) There is no substantial evidence that the microfilm, microfiche, or other storage-only imaging system lacks authenticity or integrity.