The IRS permits the use of electronic records and the destruction of original books and records. According to Rev. Proc. 97-22, taxpayers must ensure an accurate and complete transfer of hard-copy records to electronic storage media.
The electronic records must be indexed and preserved so the user can retrieve the records. Reasonable controls should also be implemented to ensure document integrity and reliability.
The destruction of hardcopy documents is also permitted once it can be established the records can be accurately reproduced. Please consult your tax advisor and legal counsel before destroying any documents.
Click here to review Rev. Proc. 97-22, 1997-13 I.R.B. 97 (Guidance on Electronic Records)