WHO IS TO KEEP RECORDS
Ken: Here is what I have put together and still working on it. Please save and use it as you see fit. Will send
some letters I have sent for the past 6 years. JoAnn
WHO IS TO KEEP RECORDS! WHO’S MADE LIABLE! WHO IS "SUBJECT" TO THE TAX!
Chronology of the statute, IRC, Sec. 6001 and its regulations as to who is required to "keep such records
as the Secretary deems sufficient to show whether or not such person is liable for tax under this
title." First, we look at IRC, Sec. 6001 which is located in 26 United States Code (also known as Internal
Revenue Code or IRC).
INTERNAL REVENUE CODE---TITLE 26, Subtitle F, CHAPTER 61, Subchapter A, PART I, Sec.
6001
STATUTE -- Sec. 6001. Notice or regulations requiring records, statements, and special returns
Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records,
render such statements, make such returns, and comply with such rules and regulations as the Secretary
may from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may
require any person, by notice served upon such person or by regulations, to make such returns,
render such statements, or keep such records, as the Secretary deems sufficient to show whether or
not such person is liable for tax under this title. The only records which an employer shall be required to
keep under this section in connection with charged tips shall be charge receipts, records necessary to
comply with section 6053(c), and copies of statements furnished by employees under section 6053(a).
SECTION REFERRED TO IN OTHER SECTIONS
This section referred to in sections 874, 911, 922, 4403, 6033 of this title
CODE OF FEDERAL REGULATIONS
26 CFR Sec. 1.6001-1 ---Refers to Records Required to be kept for "Normal Taxes and Surtaxes -DETERMINATION OF TAX LIABILITY --Tax on Individuals" -- any person subject to tax under
Subtitle A of the Code (including a qualified State individual income tax which is treated pursuant to
section 6361(a) as if it were imposed by Chapter 1 of Subtitle A), or any person required to file a
return of information with respect to income
26 CFR Sec. 1.6001-2 -- Returns --- Liable for one or more qualified State Individual Income
Taxes as defined in section 6362 ---- Note: Sec. 6362. Qualified State individual income taxes
[Repealed--1990 Rev. Recon. Act, sec. 11801(a)(45)]
26 CFR CHAPTER I, Sec. 1.6001-1 -- Records.
......... . (d) Notice by district director requiring returns statements, or the keeping of records. The
district director may require any person, by notice served upon him, to make such returns,
render such statements, or keep such specific records as will enable the district director to
determine whether or not such person is liable for tax under Subtitle A of the Code, including
qualified State individual income taxes, which are treated pursuant to section 6361(a) as if they were
imposed by Chapter 1 of Subtitle A.
26 CFR Sec. 20.6001 ---- Refers to Records Required to be kept for "Estate Tax".
26 CFR Sec. 25.6001 ---- Refers to Records Required to be kept for "Gift Tax".
26 CFR Sec. 31.6001-6 --- Refers to Records Required to be kept for "Subpart G Administrative
Provisions of Special Application To Employment Taxes
Notice by district director requiring returns, statements, or the keeping of records. The district director
may require any person, by notice served upon him, to make such returns, render such statements,
or keep such specific records as will enable the district director to determine whether or not such
person is liable for any of the taxes to which the regulations in this part have application.
26 CFR Sec. 41.6001 ---- Refers to Records Required to be kept for "Excise Tax on Use of Certain
Highway Motor Vehicles"---Administrative Procedures of Special Application To Tax On Use Of
Certain Highway Motor Vehicles"
26 CFR Sec. 44.6001 ---- Refers to Records Required to be kept for "Taxes On Wagering".
26 CFR Sec. 53.6001 ---- Refers to Records Required to be kept for "Foundation and Similar Excise
Taxes".
26 CFR Sec. 55.6001 ---- Refers to Records Required to be kept for "Excise Tax On Real Estate
Investment Trusts".
26 CFR Sec. 56.6001 ---- Refers to Records Required to be kept for "Public Charity Excise Taxes".
26 CFR Sec. 156.6001-1 --- Refers to Records Required to be kept for "Greenmail".
Sec. 156.6001-1 NOTICE OR REGULATIONS REQUIRING RECORDS, STATEMENTS, AND
SPECIAL RETURNS.
(a) IN GENERAL.
Any person subject to tax under chapter 54 (Greenmail) of the Code shall keep such
complete and detailed records as are sufficient to enable the district director to determine
accurately the amount of liability under chapter 54.
(b) NOTICE BY DISTRICT DIRECTOR REQUIRING RETURNS, STATEMENTS,
OR THE KEEPING OF RECORDS.
The district director may require any person, by notice served upon him, to make such
returns, render such statements, or keep such specific records as will enable the district
director to determine whether or not the person is liable for tax under chapter 54 of the
Code.
(c) RETENTION OF RECORDS.
The records required by this section shall be kept at all times available for inspection by
authorized internal revenue officers or employees, and shall be retained so long as the
contents thereof may become material in the administration of any internal revenue law.
[T.D. 8379, 56 FR 65685, Dec. 18, 1991, corrected by 57 FR 5931, Feb. 18, 1992]
26 CFR Sec. 301.6001 ---- Refers to Records Required to be kept for "Procedure and
Administration".
26 CFR Sec. 301.6001-1-- Notice or regulations requiring records, statements, and special
returns
Title 26 CHAPTER I, SUBCHAPTER F, PART 301
For provisions requiring records, statements, and special returns, see the regulations relating
to the particular tax.
-------------------------------------------------------------------------------------Handbook of Delegation Orders, Internal Revenue Manual (IRM) 1229, ---Delegation Order No. 24. Authority to Require Records to be Kept.
The Assistant Commissioner (International) and District Directors of Internal Revenue are
hereby authorized to require any person, by notice served upon him, to keep such records as
shall show whether or not such person is liable for tax under the Internal Revenue Code of 1954.
This Order supersedes Delegation Order No. 24, issued February 29, 1956.
/s/ James I. Owens
Deputy Commissioner
-----------------------------------------------------------------------------------------Internal Revenue Manual 5200, Delinquent Return Procedures, page 5200-22
Sec. 52(11)2.3 (6-19-89)
TC 591--Final
(1) When the taxpayer is no longer required to file a return for a type of tax, complete TC 591
block with appropriate closing code for the earliest period on the TDI or IDRS for the
appropriate types of tax.
-----------------------------------------------------------------------------------------Federal Register -- T.D. 7577,Vol. 43, No. 245, Wed., Dec. 20, 1978, p. 59356-7
p. 59356----FEDERAL COLLECTION AND ADMINISTRATION OF QUALIFIED STATE
INDIVIDUAL INCOME TAXES; REPORTS TO JOINT COMMITTEE ON TAXATION
AGENCY: Internal Revenue Service, Treasury.
p. 59357----PART 1---INCOME TAX; TAXABLE YEARS BEGINNING AFTER DECEMBER
31, 1953
§ 1.6001-1 Records.
(d) Notice by district director requiring returns, statements, or the keeping of records. The district
director may require any person, by notice served upon him, to make such returns, render such
statements, or keep such specific records as will enable the district director to determine whether
or not such person is liable for tax under Subtitle A of the Code, including qualified State
individual income taxes, which are treated pursuant to section 6361(a) as if they were imposed by
Chapter 1 of Subtitle A.
-------------------------------------------------------------------------------------Cross/Table of Authorities re: U.S.C. §6001
26 U.S.C. §6001 ---------------------------------CFR (Code of Federal Regulations) Parts 1, 31, 55,
156,
27 CFR Parts 19, 53, 194, 250, 296
Note: 27 CFR is the Alcohol, Tobacco and Firearms Code.
---------------------------------------------------------------OMB (Office of Management Budget) Nos. for Specific Forms relating to partiular 26 CFR
sections relating to 6001.
26 CFR Sec. 1.6001-1 ---------------------------------------1545-0058, 1545-0074, 1545-0099, 1545-0865
26 CFR Sec. 20.6001 ---------------------------------------1545-0015
26 CFR Sec. 25.6001 ---------------------------------------1545-0020, 1545-0022
26 CFR Sec. 31.6001 ----------------------------------------1545-0798, 1545-0034, 1545-0028, 1545-0029
26 CFR Sec. 41.6001 ---------------------------------------1545-0143
26 CFR Sec. 44.6001 ---------------------------------------1545-0235
26 CFR Sec. 53.6001 ---------------------------------------1545-0052
26 CFR Sec. 55.6001 ---------------------------------------1545-0123
26 CFR Sec. 56.6001 ---------------------------------------1545-1049
26 CFR Sec. 301.6001 --------------------------------------None
Note: The below re: OMB’s is what I’ve gotten so far. Not completed yet. I’m looking for the
specific Forms that go with each of the OMB #’s.
OMB (Office of Management Budget) Nos. for Specific Forms relating to partiular 26 CFR
sections relating to 6001.
26 CFR Sec. 1.6001-1
Form Sect. Of CFR Applicable
1545-0058: 1.521-1; 1.6001-1
1545-0074: 1040 1.23-5; 1.31-2; 1.32-2; 1.37-1; 1.37-3; 1.41-4A;
1.41-4(b) and (c); 1.44A-3; 1.61-15; 1.63-1;
1.71-1T; 1.72-4; 1.72-6; 1.72-9; 1.72-17 and 17A;
1.72-18; 1.79-2; 1.79-3; 1.83-2; 1.83-5; 1.105-4;
1.105-6; 1.51-1; 1.152-4; 1.152-4T
1545-0099: 1.552-3, -4, -5; 1.611-3; 1.612-5; 1.613-3
1545-0865: 1.6111-1T; 1.6112-1T; 301.6707-1T; 301.6708-1T
26 CFR Sec. 20.6001
1545-0015 706 20.2011-1; 20.2014-5; 7.6039A-1
26 CFR Sec. 25.6001
1545-0020 709
1545-0022 20.6018-4
26 CFR Sec. 31.6001
1545-0798
1545-0034
1545-0028 940
29. 941 and
941-SS
26 CFR Sec. 41.6001
1545-0143 2290
26 CFR Sec. 44.6001
1545-0235 730
26 CFR Sec. 53.6001
1545-0052 990-PF and
4720
26 CFR Sec. 55.6001
1545-0123 1120 (Corp)
26 CFR Sec. 56.6001
1049.
56.6011-1; 56.6081-1; 56.6161-1; 156.6081-1;
156.6161-1
26 CFR Sec. 156.6001
No OMB #’s listed
26 CFR Sec. 301.6001
No OMB #’s listed
Note: References:
Sec. 6362. Qualified State individual income taxes
[Repealed--1990 Rev. Recon. Act, sec. 11801(a)(45)]
Procedure and Administration
INFORMATION AND RETURNS
Returns and Records
Source: Sections 1.6001-1 to 1.6091-4 contained in T.D. 6500, 25 FR 12108, Nov. 26, 1960,
unless otherwise noted.
Records, Statements, and Special Returns
Sec. 1.6001-1 Records.
(a) In general.
Except as provided in paragraph (b) of this section, any person subject to tax under Subtitle A of
the Code (including a qualified State individual income tax which is treated pursuant to section
6361(a) as if it were imposed by Chapter 1 of Subtitle A), or any person required to file a return of
information with respect to income, shall keep such permanent books of account or records,
including inventories, as are sufficient to establish the amount of gross income, deductions,
credits, or other matters required to be shown by such person in any return of such tax or
information.
(b) Farmers and wage-earners.
Individuals deriving gross income from the business of farming, and individuals whose gross
income includes salaries, wages, or similar compensation for personal services rendered, are
required with respect to such income to keep such records as will enable the district director to
determine the correct amount of income subject to the tax. It is not necessary, however, that with
respect to such income individuals keep the books of account or records required by paragraph (a)
of this section. For rules with respect to the records to be kept in substantiation of traveling and
other business expenses of employees, see section 1.162-17.
(c) Exempt organizations.
In addition to such permanent books and records as are required by paragraph (a) of this section
with respect to the tax imposed by section 511 on unrelated business income of certain exempt
organizations, every organization exempt from tax under section 501(a) shall keep such permanent
books of account or records, including inventories, as are sufficient to show specifically the items
of gross income, receipts and disbursements. Such organizations shall also keep such books and
records as are required to substantiate the information required by section 6033. See section 6033
and sections 1.6033-1 through 1.6033-3.
(d) Notice by district director requiring returns statements, or the keeping of records.
The district director may require any person, by notice served upon him, to make such
returns, render such statements, or keep such specific records as will enable the district
director to determine whether or not such person is liable for tax under Subtitle A of the
Code, including qualified State individual income taxes, which are treated pursuant to section
6361(a) as if they were imposed by Chapter 1 of Subtitle A.
(e) Retention of records.
The books or records required by this section shall be kept at all times available for inspection by
authorized internal revenue officers or employees, and shall be retained so long as the contents
thereof may become material in the administration of any internal revenue law.
[T.D. 6500, 25 FR 12108, Nov. 26, 1960, as amended by T.D. 7122, 36 FR 11025, June 8, 1971;
T.D. 7577, 43 FR 59357, Dec. 20, 1978; T.D. 8308, 55 FR 35593, Aug. 31, 1990]
Sec. 1.6001-2 Returns.
For rules relating to returns required to be made by every individual, estate, or trust which is liable
for one or more qualified State individual income taxes, as defined in section 6362, for a taxable
year, see paragraph (b) of section 301.6361-1 of this chapter (Regulations on procedure and
Administration).
[T.D. 7577, 43 FR 59357, Dec. 20, 1978]
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Personal Note: Take notice that Treasury Decision 7577 is the so-called authorization that
governs and regulates IR Code, § 6001. This Treasury Decision relates to "Federal Collection
And Administration Of Qualified State Individual Income Taxes".
JoAnn