How long do I need to keep sales receipt records for IRS? Storage solution?

What records are we required to save and what can we throw out? CenPOS saves receipts with instant retrieval for 7 years.

How are you retaining records now and how easy would it be to retrieve specific data? Below we examine the records related to business income and how CenPOS can help you meet these requirements. There is no definitive answer for records retention from taxing and legal authorities, only general guidance and some rules.

The following information is to provide some general guidance and to help you with a dialog with your professionals, who can address specific requirements. In addition to IRS rules and requirements, some of the recommendations may apply to state and/or other federal regulatory rules (such as the Department of Labor, etc). Certain professions have specific rules dictated by their licensing bodies. For instance, in Florida, medical records must be kept five years from the last contact with the patient.

The Internal Revenue Service has stated:

“Records such as receipts, cancelled checks, and other documents that support an item of income or a deduction appearing on your tax return should be kept until the statute of limitations expires for that return. Usually this is three years from the date the return was due or filed, or two years from the date the tax was paid, whichever is later. There is no statute of limitations when a return is false or fraudulent or when no return is filed.

The following is a non-IRS list of recommendations for income records retention:

Accounts receivable ledgers and schedules – 7 years

Bank statements and reconciliations – 7 years

Cash register tapes – 7 years

Sales tax returns – 7 years

CenPOS provides 7 years record retention regardless of the payment input location. Additionally, you can pull receipts, including signed receipts, on demand at no additional cost. Export all data as a CSV file.  Whether your customer pays in person, online, or over the phone, CenPOS is the hub for all electronic payments. If you are subject to an audit and need a large number of records, you can contact our support team for large retrieval alternative options.

retrieve and reprint receipts for 7 years

Retrieve and reprint receipts for 7 years with any custom date selection. Over 20 standard fields, plus custom fields are stored.

 

About CenPOS : “Creating efficiencies through payment innovation”

Founded in 2009, Miami-based CenPOS is a payment technology provider committed to providing its customers and partners with innovative solutions for today’s rapidly evolving consumer payment choices. CenPOS is an intelligent payment-processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems.

CenPOS Global sales: Christine Speedy direct (954)942-0483, HQ toll free: (877) 630-7960.

 

IRS Backup Withholding postponed but First Data merchants may pay anyway

On October 27, 2011, the IRS announced that backup withholding will be postponed for one year. Backup withholding will be applied to amounts paid after 12/31/2012.  The penalty relief will not, however, extend to entities that fail to file or make no effort to file 2011 Forms 1099-K as required.

Bottom line: If your IRS TIN does not match your merchant account information, then you could be subject to penalties.
“First Data continues to review State regulations related to Section 6050W backup withholding.    Based on our research to date, we currently believe that the backup withholding delay will apply to both Federal and State.    As a result, First Data is in the process of adjusting our project timelines to support backup withholding for missing / invalid TINs as of January 1, 2013. Although the delay impacts activation of backup withholding processes, development efforts continue for timely implementation.
We are in the process of researching IRS plans for the CP2100 process, expected for the Fall of 2012. Once we have additional details we will notify you.
The above announced changes do not impact our client’s responsibility to obtain valid Tax Filing Names and Tax Identification Numbers from their merchants as applicable. This information is required to ensure accurate filing of the form 1099-K reporting to the merchants and the IRS.”

Related article, Jan. 1, 2011 Deadline for credit processing reporting to IRS looms.

First Data comments on merchant penalties related to IRS backup withholding

First Data released an article called Perspective: IRS 1099-K “Transitional Relief” Offers Backup Withholding Breather to Impacted Merchants. It’s critical for merchants to understand that while recent IRS changes with respect to payment processor reporting have been delayed, the merchant is still responsible. The two recent IRS notices do not bring merchants additional time in which to prepare for the new reporting requirements. They do, however, bring more time before affected merchants will likely have to worry about financial impacts, such as backup withholding.

RELATED ARTICLES:
Link to full article on First Data

Link to IRS New Payment Card Reporting Requirements

IRS postpones backup withholding on credit card payment reporting until 2013

The IRS announced a penalty enforcement delay for merchants. Set to begin January 2012, merchants would have been subject to penalty of 30% withholding, with deductions automatically taken from their merchant account deposits.

PDF download: Official IRS noticeIRS bulletin n-11-89 regarding backup withholding 1099k for card payments