I had a couple from church just stop by and ask the following question of me. I told them I would ask someone because I am not legal council.

How long do most banks keep their 941 TTL records. The reason is the IRS is saying they did not pay their 941s in the year 2000. They took their bank receipts showing date, time, amount, teller number and what it was for. The IRS WILL NOT accept this. Says the receipt is "to old." They told them that was what they asked for. The IRS wants a copy of the cancelled check and or a copy of the bank's records showing the 941 deposit was accepted by the bank. The bank they have dealt with says, We cannot give that to you as we destroy all records after 10 years and what you are asking for is over that.

What are their options? I know we kept a journal book and copy of all our TTL transactions and they are stored, just in case. Their bank told them they are just plain out of luck.

Somebody is blowing smoke, the IRS does not go back 13 years in any audit.

Well I know these people and I have seen what they have and THEY are not blowing smoke. Now the bank saying they have destroyed all their microfilm and documents older than 10 years, I believe they are.

Unless they failed to file returns or filed fraudulent returns, the statute of limitations expire in 6 years maximum. See table 3:

http://www.irs.gov/publications/p552/ar02.html

There is no a bank in the nation that would have these records after 10 years.

They did not fail to file a return. The IRS is saying they never received the TTL deposit from the bank. They have the receipt from the bank showing this but the IRS says it cannot be used because it is "To Old!"

OBTW, the bank I work for has microfilm records all the way back to 1976/77.

Then your bank is foolish if you have customer data that far back as you would be required to research information back that far and produce records if you receive a subpoena. You need some serious record retention help.

I would say that your friends should seek legal help/tax professional help in dealing with the IRS issue.

Re maintaining records back that far, adherence to record retentiton standards is done for many reasons including limiting a bank's need to go back that far in subpoenas and lawsuits. Maintaining such old records can work against a bank.

rlcarey,

Can you point me somewhere that says "customer data that far back as you would be required to research information back that far and produce records if you receive a subpoena". We just had this dicusssion this morning. Any help you could provide would be great.

Not rlcarey, but if a court order says you are to deliver records for the last 10 years and you have them, then you will do so or face contempt charges. Your attorney can confirm that easily enough. If the applicable record retention requirement was 6 years and that's all you had, then you don't have a problem.

Read his comment and Kathleen's in tandem. Keeping records beyond the period the law requires you to keep them is just bad judgment. Banks should have a record retention and destruction program.

That was my argument but I was asked to look for something like a Reg to demonstrate it. It's on the subpoena itself. Thank you very much.