SECTION 15. INTERNAL REVENUE

SERVICE OFFICE CONTACT

.01 Questions regarding this revenue procedure should be directed to the Office

.02 Records Evaluation.

(1) The District Director may conduct a records evaluation at any time the District Director deems it appropriate to review the taxpayer’s record retention practices, including the taxpayer’s relevant data processing and accounting systems.

(2) The records evaluation described in section 10.02(1) of this revenue procedure is not an “examination”, “investigation,” or “inspection” of the books and records within the meaning of § 7605(b) of the Code, or a prior audit for purposes of § 530 of the Revenue Act of 1978, 1978–3 (Vol. 1) C.B. 119, as amended by § 1122 of the Small Business Job Protection Act of 1996, because this evaluation is not directly related to the determination of the tax liability of a taxpayer for a particular taxable period.

.03 Testing.

(1) The District Director may periodically initiate tests to establish the authenticity, readability, completeness, and integrity of a taxpayer’s machine-sensible records retained in conformity with this revenue procedure.

(2) These tests may include a review of integrated systems such as EDI or an electronic storage system, and a review of the internal controls and security procedures associated with the creation and maintenance of the taxpayer’s records.

(3) The tests described in section 10.03(1) of this revenue procedure are not an “examination”, “investigation,” or “inspection” of the books and records within the meaning of § 7605(b) of the Code, or a prior audit for purposes of § 530 of the Revenue Act of 1978, 1978–3 (Vol. 1) C.B. 119, as amended by § 1122 of the Small Business Job Protection Act of 1996, because these tests are not directly related to the determination of the tax liability of a taxpayer for a particular taxable period.

(4) The District Director will inform the taxpayer of the results of these tests.