EP Team Audit (EPTA) Program - Taxpayer Documentation Guide - Why Retain Records?
The Internal Revenue Code and Income Tax Regulations require that every person liable for any tax imposed by the Internal Revenue Code keep books and records available at all times for inspection by IRS. In addition, under the Employee Retirement Income Security Act of 1974, as amended, (ERISA) employers are required to keep records sufficient to determine benefits due or which may become due. Finally, Revenue Procedure 98-25 provides the basic requirements for recordkeeping when a taxpayer maintains records in an automatic data processing system. Thus, plan records must be retained to meet the requirements of the Internal Revenue Code, the Income Tax Regulations, and ERISA.