Books and records; federal returns; inspection
Sec. 4. (a) Every person subject to a listed tax must keep books
and records so that the department can determine the amount, if any,
of the person's liability for that tax by reviewing those books and
records. The records referred to in this subsection include all source
documents necessary to determine the tax, including invoices,
register tapes, receipts, and canceled checks.
(b) A person must retain the books and records described in
subsection (a), and any state or federal tax return that the person has
filed:
(1) for an unlimited period, if the person fails to file a return or
receives notice from the department that the person has filed a
suspected fraudulent return, or an unsigned or substantially
blank return; or
(2) in all other cases, for a period of at least three (3) years after
the date the final payment of the particular tax liability was due,
unless after an audit, the department consents to earlier
destruction.
In addition, if the limitation on assessments provided in section 2 of
this chapter is extended beyond three (3) years for a particular tax
liability, the person must retain the books and records until the
assessment period is over.
(c) A person must allow inspection of the books and records and
returns by the department or its authorized agents at all reasonable
times.
(d) A person must, on request by the department, furnish a copy
of any federal returns that he has filed.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.6-1987,
SEC.11; P.L.71-1993, SEC.18.
Last modified: May 28, 2006