California – BOE To Address Proposed Changes To Regulation 1698 (Records)

SALT Report 3784 – On March 29-30 the BOE will be conducting their monthly meeting in Sacramento. In a reasonable attempt to update the Regulations 1698 and 4901 addressing the records required to be retained by Point of Sales systems the BOE will be adopting the following changes.

“The proposed amendments to both regulations define the term electronic cash register and provide that the term includes integrated point of sale (POS) systems. The proposed amendments add an example to both regulations explaining that if the taxpayer’s POS system periodically overwrites stored data, the taxpayer should transfer and maintain a copy of all the data that would be overwritten or otherwise removed for the specified record retention period. The proposed amendments update the term “machine-sensible records” to “electronic records” throughout both of the regulations. The proposed amendments to both regulations clarify that storage-only imaging media includes “PDF files” and the amendments to Regulation 1698 clarify that storage-only imaging media includes “other media used in electronic imaging” to be consistent with the current provisions of Regulation 4901.”

Although the changes may appear to be relatively subtle and innocuous the expectation on the part of the BOE is clear. Have your records available and backed up.

For further Information:

https://www.boe.ca.gov/regs/pdf/Reg1698_4901_Notice_2016.pdf

http://www.boe.ca.gov/meetings/pdf/2016/032916_PAN_March_Sacramento.pdf