34 Tex. Admin. Code § 3.281 - Records Required; Information Required
(a) Persons who must keep records.
(1) Sellers of taxable items and purchasers
who store, use, or consume taxable items in this state shall keep books,
papers, and records in the form that the comptroller requires.
(2) Examples of persons who are required to
keep records include the following:
(A) a
person who sells, leases, or rents tangible personal property;
(B) a person who performs taxable labor, such
as fabricating, processing, and producing tangible personal property;
(C) a person who performs taxable services
that are listed in Tax Code, §
151.0101; or
(D) a person who purchases taxable
items.
(b)
Records required.
(1) Records must reflect
the total gross receipts from all sales, rentals, leases, taxable services, and
taxable labor. Examples include, but are not limited to, receipts, shipping
manifests, invoices, and other pertinent papers from each rental, lease,
taxable service, and each taxable labor transaction that occurs during each
reporting period.
(2) Records must
reflect total purchases of taxable items. Examples include, but are not limited
to, receipts, shipping manifests, invoices, and other pertinent papers of all
purchases of taxable items from every source that are made during each
reporting period.
(3) Additional
records must be kept to substantiate any claimed deductions or exclusions
authorized by law. Examples include, but are not limited to, receipts, shipping
manifests, invoices, exemption certificates, resale certificates, and other
pertinent papers that substantiate each claimed deduction or
exclusion.
(4) Records must reflect
all sales and use tax, and any money represented to be sales and use tax,
received or collected on each sale, rental, lease, or service transaction.
Examples include, but are not limited to, sales receipts, invoices, or other
equivalent records, including electronically stored images of such documents,
showing all sales and use tax received or collected during each reporting
period.
(5) Records may be written,
kept on microfilm, stored on data processing equipment, or may be in any form
that the comptroller may readily examine.
(c) Failure to keep or to provide accurate
records. If a person who is required to keep records under subsection (a) of
this section fails to keep accurate contemporaneous records of gross receipts,
gross purchases, deductions, exclusions, and taxes received or collected, or if
a person fails to produce such records when requested by the comptroller during
an audit or investigation, the comptroller may take actions that include, but
are not limited to, the following:
(1)
estimate the person's tax liability based on any available information that
includes, but is not limited to, records of suppliers;
(2) use a sample and projection auditing
method to calculate the person's tax liability. For further information, see
§
3.282 of this title (relating to
Auditing Taxpayer Records);
(3)
suspend the person's permit;
(4)
file criminal charges as provided in §
3.305 of this title (relating to
Criminal Offenses and Penalties); and
(5) take other action as authorized by law to
enforce compliance with the Tax Code.
(d) Information required.
(1) The comptroller may require any person
subject to the Limited Sales and Use Tax Act to furnish information necessary
to:
(A) identify any person applying for a
permit or any person required to file a return;
(B) determine the amount of bond required to
commence or continue business;
(C)
determine possible successor liability; and
(D) determine the amount of tax the person is
required to remit.
(2)
The information required may include, but is not limited to, the following:
(A) name of the actual owner of the
business;
(B) name of each partner
in a partnership;
(C) names of
officers and directors of corporations and other organizations;
(D) all trade names under which the owner
operates;
(E) mailing address and
actual locations of all business outlets;
(F) license numbers, title numbers, and other
identification of business vehicles;
(G) identification numbers assigned by other
governmental agencies, including social security numbers, federal employers
identification numbers, and drivers license numbers;
(H) names of suppliers, banks, and other
persons with whom the taxpayer transacts business;
(I) names and last known addresses of former
owners of the business.
(e) Retention. A person who is required to
keep records under subsection (a) of this section must keep those records for a
minimum of four years from the date on which the record is made, and throughout
any period in which any tax, penalty, or interest may be assessed, collected,
or refunded by the comptroller or in which an administrative hearing or
judicial proceeding is pending, unless the comptroller authorizes in writing a
shorter retention period. A person must keep exemption and resale certificates
for a minimum of four years following the completion of the last sale that is
covered by the certificate.
(f) The
comptroller, the attorney general, or the authorized representative of either
of them may examine, copy, and photograph any records of any person who is
required to keep records under subsection (a) of this section, to verify the
accuracy of any return or to determine any tax liability. However, during an
audit, an auditor for the comptroller should obtain permission from a taxpayer
to copy or photograph records that are proprietary in nature, unless the
comptroller reasonably believes that the taxpayer may have committed fraud or
taken action to evade taxes. If the taxpayer does not grant the auditor
permission to copy or photograph records, and the comptroller believes that the
records are necessary to determine the tax liability of the taxpayer, then the
comptroller may obtain records through other means under authority granted by
Tax Code, §
111.0043.
Notes
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