Texas Tax – Records Retention & Destruction

Frequently Asked Questions

Am I required to keep business records?
Yes, you are required to keep business records so that an auditor from the Comptroller’s office can verify the accuracy of your sales and use tax liabilities.

What type of records do I keep?
Please refer to Rule 3.281 “Records Required; Information Required.”

How long do I keep my business records?
You must keep sales and use tax records for at least four years unless the Comptroller gives written authorization for earlier destruction. This applies to all records that pertain to transactions involving sales or use tax liability. In addition, if your records are being audited by the Comptroller, you should retain all records for the period being audited until the audit is completed (or-if you appeal the findings or file a claim for refund-until your case is resolved).

Should I keep resale or exemption certificates that I have accepted?
Yes. You need to keep the certificates to document claimed nontaxable sales. If you do not keep these records, you are subject to tax, interest, and penalty charges. Comptroller certificates are the only proof of exempt sales.

RULE §3.281 Records Required; Information Required
RULE §3.282 Auditing Taxpayer Records
RULE §3.291 Contractors
RULE §3.295 Natural Gas and Electricity
RULE §3.339 Statute of Limitations