Legal Question in Technology Law in New Jersey

Document retention via electronic means

I have recently begun the process of scanning all my old financial documents into my computer, stored as PDF files, so I can keep better track of them. Once they are all scanned and a reliable backup has been produced, I plan on destroying the original paper documents, both for security, and to save space.

I am concerned, however, about the admissability of my digital copies if any of the documents -- ranging from bank statements to tax return records -- were ever required in a legal proceeding, tax audit, or other such event.

Am I safe (legally speaking) relying on my digital copies? Or should the original, printed copies still be kept accessable? I suspect the electronic copies are fine, based on the fact that my 2004 taxes were filed online with H&R Block, and my only record is a PDF file they sent me. But I would feel better having the issue clarified anyway.

Thank you in advance.


Asked on 9/11/05, 5:24 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: Document retention via electronic means

Copies made from electronic copies of most documents will suffice for evidentiary purposes. There are some cases for which the original should be maintained. These include wills (a copy is not admissible to probate)and documents with a raised seal. You should also probably retain any important document if it contains the original signature of a person other than yourself.

For a good summary of times for document retention, see http://www.gigalaw.com/articles/2000-all/gall-2000-09-all.html

The above article does not include the fact that it is not a good idea for business or most individuals to retain the detailed records much beyond the required period. There are various reasons for this. One important reason is that these records, if you have them, are subject to discovery in a suit even though you are not required to retain them. The less information, the better.

I recommend that you keep your records organized by year of creation and year of destruction. Then, pull out any summaries that you may want to retain for a long period. These might be copies of your tax returns, financial summaries (year end balance sheets, income statements). That way, when the destruction date comes, you won't have to review everything to see if there is anything that you do want to retain for a longer time.

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Answered on 9/13/05, 12:58 am


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