Iowa Admin. Code r. 701-230.2 - [Effective 4/23/2025] Records
(1)
Generally. Every taxpayer shall keep, preserve, and make
available to the department records for a period of at least three years. The
following is a nonexhaustive list of records that are subject to the provisions
of this rule. 701-Chapter 11 provides more information for taxpayers using an
electronic data interchange process or technology. Nothing in this rule shall
be construed to affect the provisions of any applicable federal law. The
records will be considered inadequate when the requirements of this rule are
not met. The director may, by express order in certain cases, authorize permit
holders to keep their records in a manner and upon forms other than those so
prescribed (agreements must be in writing).
(2)
General requirements for records
used in an appeal. If a tax liability has been assessed and an appeal
is pending to the department, district court or an appellate court, books,
papers, records, memoranda or documents specified in this rule that relate to
the period covered by the assessment shall be preserved until the final
disposition of the appeal.
(3)
Cigarette manufacturer. Cigarette manufacturers are required
to keep the following records.
a. Records,
including invoices, showing the sale of cigarettes in Iowa or the sale of
cigarettes for shipment into Iowa.
b. Records evidencing the transportation of
cigarettes into Iowa.
c. Records,
including invoices, showing all sales of cigarettes to permittees.
d. A record of all stamps
purchased.
e. Copies of all reports
filed with the department.
(4)
Cigarette distributing
agent. Cigarette distributing agents are required to keep the
following records.
a. Records of the receipt
of all cigarettes showing the number of cigarettes received and from whom the
cigarettes were received.
b.
Records of all distribution of cigarettes showing the number of cigarettes
shipped and to whom and at whose direction the cigarettes were
distributed.
c. Records showing all
exports of cigarettes.
d. Copies of
all reports filed with the department.
e. Detailed inventory records.
f. Freight receiving and shipping
records.
(5)
Cigarette distributors. Cigarette distributors are required to
keep the following records.
a. Records,
including invoices, showing the purchase of all cigarettes sold, used or stored
in Iowa.
b. Records, including
invoices, showing the sale of cigarettes in Iowa.
c. Detailed inventory records.
d. Freight receiving and shipping
records.
e. A record of all stamps
purchased.
f. Copies of all reports
filed with the department.
(6)
Cigarette wholesaler.
Cigarette wholesalers are required to keep the following records.
a. Records, including invoices, evidencing
the purchase of all cigarettes.
b.
Records, including invoices, evidencing the sale of all cigarettes.
c. Detailed inventory records.
(7)
Cigarette
vendor. Cigarette vendors are required to keep the following records.
a. Records, including invoices, evidencing
the purchase of all cigarettes.
b.
Records evidencing the sale of cigarettes.
c. Inventory records.
d. Records of all cigarette vending machines
owned, furnished, installed, serviced, operated or maintained by the vendor and
the location of each.
(8)
Cigarette retailer. Cigarette retailers are required to keep
the following records.
a. Records, including
invoices, evidencing the purchase of all cigarettes.
b. Inventory records.
(9)
Tobacco distributor.
Tobacco distributors are required to keep the same records as a cigarette
distributor as described in subrule 230.2(5), but with respect to tobacco, no
records of stamps purchased are required.
(10)
Tobacco subjobber.
Tobacco subjobbers are required to keep the same records as a cigarette
wholesaler as described in subrule 230.2(6) but with respect to
tobacco.
(11)
Tobacco
retailer. Tobacco retailers are required to keep the same records as a
cigarette retailer as described in subrule 230.2(8) but with respect to
tobacco.
(12)
Common
carrier engaged in transporting cigarettes or tobacco products into
Iowa. Common carriers engaged in transporting cigarettes or tobacco
products into Iowa are required to keep the following records.
a. Copies of bills of lading or manifests as
to each transportation of cigarettes or tobacco.
b. Log book or trip sheets.
(13)
Microfilm and related
records system.
a. Microfilm,
microfiche, COM (computer on machine) and other related reduction in storage
systems will be referred to as "microfilm" in this rule.
b. Microfilm reproductions of general books
of account, such as a cash book, journals, voucher registers, ledgers, etc.,
are not acceptable other than those that have been approved by the Internal
Revenue Service. However, microfilm reproductions of supporting records of
detail, such as sales invoices, purchase invoices, credit memoranda, etc., may
be allowed providing all the following conditions are met and accepted by the
taxpayer.
(1) Appropriate facilities are
provided to ensure the preservation and readability of the films.
(2) Microfilm rolls are indexed,
cross-referenced, labeled to show beginning and ending numbers or beginning and
ending alphabetical listing of documents included, and systematically
filed.
(3) The taxpayer agrees to
provide transcripts of any information contained on microfilm that may be
required for purposes of verification of tax liability.
(4) Proper facilities are provided for the
ready inspection and location of the particular records, including modern
projectors for viewing and for the copying of records.
(5) Any audit of "detail" on microfilm may be
subject to sample audit procedures, to be determined at the discretion of the
director or the director's designated representative.
(6) A posting reference must be on each
invoice.
(7) Credit memoranda must
carry a reference to the document evidencing the original
transaction.
(8) Documents
necessary to support claimed exemptions from tax liability, such as bills of
lading and purchase orders, must be maintained in an order by which they
readily can be related to the transaction for which exemption is
sought.
(14)
Automatic data processing records. Automatic data processing
records are defined and described in 701-Chapter 11.
(15)
Other persons. The
director may require any person other than those previously listed in this rule
to maintain books and records as deemed necessary by the director.
This rule is intended to implement Iowa Code sections 453A.15, 453A.18, 453A.19, 453A.24, 453A.45, and 453A.49.
Notes
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