The IRS has officially entered the 21st century - just 11 years after it began. OK, I'm being facetious, but you would think they would have done this a long time ago. I'm talking about the recent IRS announcement that they will accept electronic records from taxpayers for IRS audits.
IRS agents have been trained in using accounting software and revenue agents are being encouraged to accept taxpayer records in electronic format. You can use a CD, DVD, or flash/jump drive to provide the files, but the IRS suggests you don't send them by email, for security reasons.
A reminder from the IRS about your responsibility for keeping records:
A taxpayer's use of a third party (such as a service bureau, time-sharing service, value-added network, or other third party service) to provide services (e.g., custodial or management services) in respect of machine-sensible records does not relieve the taxpayer of its recordkeeping obligations and responsibilities under § 6001 and this revenue procedure.
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