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  • Internal Revenue Service (IRS)

    Steering clear of an IRS audit is undoubtedly a key concern of any business of any size. Preserving financial records in accordance with IRS codes is a critical step in protecting business operations. Texas DataVault’s online backup tools provide a highly-available, redundant, policy-driven safe haven for all critical financial records

    Texas DataVault meets and exceeds all 10 explicit IRS requirements for electronic storage requirements as outlined in Rev. Proc. 97-22 IRC Sec. 6001. The requirements apply to all businesses leveraging electronic storage, including remote backup services.

    1. An electronic storage system must ensure an accurate and complete transfer of the hardcopy or computerized books and records to an electronic storage media. The electronic storage system must also index, store, preserve, retrieve, and reproduce the electronically stored books and records. An audit trail begins from the initial backup and continually updates with each subsequent backup, leaving no gaps in retrieving or capturing critical data and no doubt your data is safe
    2. An electronic storage system must include:
      • (a) reasonable controls to ensure the integrity, accuracy, and reliability of the electronic storage system; Backed up data can be restored from any point in time, from an entire directory to a specific file
      • (b) reasonable controls to prevent and detect the unauthorized creation of, addition to, alteration of, deletion of, or deterioration of electronically stored books and records; Once data is backed up remotely, it cannot be re-written or altered. Any modifications to original documents will be saved as new files. Only employees authorized by the firm have access to the data may view it.
      • (c) an inspection and quality assurance program evidenced by regular evaluations of the electronic storage system including periodic checks of electronically stored books and records; Data is always available for periodic restoration
      • (d) a retrieval system that includes an indexing system (within the meaning of section 4.02 of this revenue procedure); and
      • (e) the ability to reproduce legible and readable hardcopies (within the meaning of section 4.01(3) of this revenue procedure) of electronically stored books and records.
    3. All books and records reproduced by the electronic storage system must exhibit a high degree of legibility and readability when displayed on a video display terminal and when reproduced in hardcopy. The term “legibility” means the observer must be able to identify all letters and numerals positively and quickly to the exclusion of all other letters or numerals. The term “readability” means that the observer must be able to recognize a group of letters or numerals as words or complete numbers. The taxpayer must ensure that the reproduction process maintains the legibility and readability of the electronically stored document.

      Texas DataVault’s online backup tools replicate data to offsite storage facilitates exactly as it exists on your local systems.
    4. The information maintained in an electronic storage system must provide support for the taxpayer’s books and records (including books and records in an automated data processing system). For example, the information maintained in an electronic storage system and the taxpayer’s books and records must be crossreferenced in a manner that provides an audit trail between the general ledger and the source document(s).

      Our system replicates files exactly as they appear on local servers and computers. What this means is you’re not backing up useless data that, once restored, has to be cobbled together to make it useful. If you perform a remote backup from Texas DataVault, the files you restore are ready for use immediately.
    5. For each electronic storage system used, the taxpayer must maintain, and make available to the Service upon request, complete descriptions of: (a) the electronic storage system, including all procedures relating to its use; and (b) the indexing system (see section 4.02 of this revenue procedure). We will provide all necessary documentation if required by the IRS
    6. At the time of an examination, or for the tests described in section 5 of this revenue procedure, the taxpayer must:
      • (a) retrieve and reproduce (including hardcopies if requested) electronically stored books and records; and
      • (b) provide the Service with the resources (e.g., appropriate hardware and software, personnel, documentation, etc.) necessary to locate, retrieve, read, and reproduce (including hardcopies) any electronically stored books and records.
    7. An electronic storage system must not be subject, in whole or in part, to any agreement (such as a contract or license) that would limit or restrict the Service’s access to and use of the electronic storage system on the taxpayer’s premises (or any other place where the electronic storage system is maintained), including personnel, hardware, software, files, indexes, and software documentation.
    8. The taxpayer must retain electronically stored books and records so long as their contents may become material in the administration of the Internal Revenue laws under section 1.6001- 1(e).

      Data can be safely stored offsite for a period of seven years or more. Texas DataVault offers policy-based DataVaulting, allowing for older files to be moved off production servers and safely maintained at redundant offsite locations
    9. The taxpayer may use more than one electronic storage system. In that event, each electronic storage system must meet the requirements of this revenue procedure. Electronically stored books and records that are contained in an electronic storage system with respect to which the taxpayer ceases to maintain the hardware and the software necessary to satisfy the conditions of this revenue procedure will be deemed destroyed by the taxpayer, unless the electronically stored books and records remain available to the Service in conformity with this revenue procedure. With Texas DataVault, one provider gives you fully redundant backup of your financial records.
    10. Taxpayers may use reasonable data compression or formatting technologies as part of their electronic storage system so long as the requirements of this revenue procedure are satisfied. Data is compressed and encrypted before it leaves your facility and remains fully encrypted through transmission.

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    What are the operating system(s) of the machines you will be backing up? (Check all that apply)
    • Windows
    • Exchange
    • SQL
    • Sharepoint
    • ESX Server
    • HPUX
    • Linux
    • Novell
    • AIX
    • Oracle
    • Other
    • AS400/ iSeries

    "It is a huge hassle for a school to comply with all of the federal rules and regulations dealing with data retention. Texas DataVault makes it easy for us to store and retrieve any and everything we need. It’s been a wonderful addition to our bag of tools to make a technologist’s job easy.

    K-12 Texas Public School
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