1. (a) Machine-sensible records used to establish tax compliance shall contain sufficient transaction-level detail information so that the details underlying the machine-sensible records can be identified and made available to the department upon request.
2. (b) A taxpayer may discard duplicated records and redundant information provided its responsibilities under (a) above are met.
3. (c) At the time of an examination, the retained records shall be capable of being retrieved and converted to a standard electronic record format.
4. (d) Taxpayers shall not be required to construct machine-sensible records other than those created in the ordinary course of business.

5. (e) The following specific documentation shall be required for retained machine-sensible records:

   1. (1) Record formats or layouts;
   2. (2) Field definitions including the meaning of all codes used to represent information;
   3. (3) File descriptions such as, but not limited to, the data set name;
   4. (4) Detailed charts of accounts and account descriptions;
   5. (5) Flowcharts for the system and its programs;
   6. (6) Source listings of programs including those which provide formulas and account deviations from which the retained files were created; and
   7. (7) Evidence that the retained records reconcile to the accounting records and to the tax returns.

Source. #8389, eff 7-8-05; ss by #10388, eff 7-25-13; ss by #13660, eff 6-21-23