Enforcement of the use of the simplified set of Bookkeeping Records

December 10, 1973 REVENUE MEMORANDUM ORDER NO. 39-73 SUBJECT : Enforcement of the use of the simplified set of Bookkeeping Records TO : All Regional Directors, Branch Chiefs, Chief Revenue Officers and others concerned There is reproduced hereunder Revenue Regulations No. V-43, amending section 2 of Revenue Regulations No. V-1, or the Bookkeeping Regulations: SECTION 1. Section 2 of Revenue Regulations No. V-1, or the Bookkeeping Regulations, as amended by section 1 of Revenue Regulations No. V-13, is hereby further amended to read as follows: "Simplified sets of Bookkeeping Records" consists of the record of daily sales and cash receipts, the record of daily purchases, expenses and cash disbursements, record of the summary of transactions, and the yearly statements of networth and operations, which may be in combined form or in separate booklets. Said records should be especially designed for each class or kind of trade or business and prepared by a certified public accountant, should conform substantially with the forms illustrated by Revenue Regulations No. V-13, should be regularly bound and may be printed, mimeographed or typewritten." In order to insure conformity with requirements of the pertinent provisions of the National Internal Revenue Code and Revenue Regulations No. V-13, any Simplified Set of Bookkeeping Records should be approved by the Commissioner of Internal Revenue before the same is released for sale or use by taxpayers. All those charged with the enforcement of the internal revenue laws and regulations are enjoined to make a vigorous campaign to inform all persons subject thereto to the use of simplified sets of bookkeeping records especially designed for each class or kind of trade or business duly authorized by the Secretary of Finance pursuant to Section 334 of the Tax Code. For the proper enforcement of this Order, no report of investigation shall be passed in audit or review without specifically identifying the kind of simplified set of bookkeeping records kept by the taxpayer and date of registration with the internal revenue office concerned. Strict compliance hereof is desired in order to bolster the drive of our Office against the use of multiple and other simplified sets of bookkeeping records not adaptable to the particular business or trade of the persons subject thereto. MISAEL P. VERA Commissioner of Internal Revenue TAN 16001-593-5