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I bought a register and was told that I no longer had to save the register rolls just the daily report. Is that correct?

Full Question: I have been through an audit and hearing we are going to court... Four years ago when I bought my register from a friend of forty years he told me that I no longer had to save the register rolls just the daily report. He has told many customers this. The auditor said I need the rolls. Is there a ruling or case that says otherwise. I can't believe all of his customers have been told the wrong thing.

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Answer:

Diane Yetter photoIn general, states require retailers to maintain adequate books and records that can be used to substantiate their activity and document their total sales. Absent actual register tapes, if you have alternative documentation that can be used to prove your actual gross receipts, you should be able to present that in the case of an audit. However, NY is very aggressive and there are many cases decided in the state's favor where they have used alternative methods to determine gross receipts when the actual records are not available. Methods include bank deposits, gross up from purchases, industry averages and others. If you have other records available you should present them in your hearing. Absent this, you are likely to be unsuccessful in a challenge to the audit.

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