1. A. For purposes of storage and retention, a taxpayer may:

   1. (1) Convert hard-copy documents, received or produced in the normal course of business and required to be retained, to microfilm, microfiche, or other storage-only imaging systems; and
   2. (2) After a 3-month period, discard the original hard-copy documents, if the conditions of §B of this regulation are met.

2. B. Requirements.

   1. (1) Microfilm, microfiche, and other storage-only imaging systems shall meet the requirements of this regulation.
   2. (2) Documentation establishing the procedures for converting the hard-copy documents to microfilm, microfiche, or other storage-only imaging system shall be maintained and made available on request. The 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.
   3. (3) A taxpayer shall establish procedures for the effective identification, processing, storage, and preservation of the stored documents and for making them available for the period they are required to be retained.
   4. (4) A taxpayer shall provide adequate facilities and equipment for reading, locating, and reproducing any documents maintained on microfilm, microfiche, or other storage-only imaging system so that records may be reviewed in a prompt and efficient manner.
   5. (5) When displayed on storage-only imaging equipment or reproduced on paper, the documents shall exhibit a high degree of legibility and readability. 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. Readability is defined as the quality of a group of letters or numerals being recognizable as words or complete numbers.
   6. (6) All data stored on microfilm, microfiche, or other storage-only imaging systems shall be maintained and arranged in a manner that permits the prompt and efficient location of a particular record.
3. C. The Comptroller is under no obligation to use records stored on microfilm, microfiche, or other storage-only imaging system if there is evidence that it lacks authenticity or integrity or does not meet the requirements set forth in §B of this regulation.

Authority: Tax-General Article, §2-103, Annotated Code of Maryland

Effective date: September 7, 1998 (25:18 Md. R. 1434)