How long must a retailer keep sales tax records?

A retailer must keep sales tax records for four years to comply with Texas state law. This duration is important because it allows the state to conduct audits and verify that the appropriate amount of sales tax has been collected and reported. Proper record-keeping ensures that retailers maintain accurate financial documents that can substantiate any sales reported to the state and provide evidence in case of any disputes or audits. Retaining records for four years strikes a balance; it is long enough to cover the statute of limitations for tax assessment while also being manageable for retailers in terms of storage and compliance efforts. This retention period helps protect both the retailer and the state’s interests regarding sales tax collection and compliance.