IRS Information
Quick Links
Members Only Section
Facebook
Posted 9/15/11
IRS INSTRUCTS SMALL BUSINESS EXAMINERS ON REQUESTS FOR ACCOUNTING SOFTWARE FILES
PRACTITIONERS HAVE SERIOUS CONCERNS
The IRS has released guidelines for its examiners in the Small Business/Self-Employed division to request data files from accounting software programs used by small business taxpayers. The IRS maintains that it has the authority under the Code to request this type of data as electronic taxpayer records. However, tax practitioners are alarmed about the potential for IRS receiving private or privileged records, information from years not under audit, and non-tax business information, such as customer lists. In the memorandum, the IRS instructs its examiners to only review relevant data and to protect confidential information. A link to the IRS Memorandum appears below.
The NSTP is studying the IRS's new guidance and will be providing further information to its members on this development in the next issue of the Federal Tax Alert.