72 Pa. Stat. § 7271 : Statutes (Unconsolidated) — TAXATION AND FISCAL AFFAIRS — TAX REFORM CODE OF 1971 — TAX FOR EDUCATION — PROCEDURE AND ADMINISTRATION — ENFORCEMENT AND EXAMINATIONS — Keeping of records

(a) General Provision. Every person liable for any tax imposed by this article, or for the collection thereof, shall keep the records, render such statements, make the returns and comply with such rules and regulations as the department may, from time to time, prescribe regarding matters pertinent to his business. Whenever in the judgment of the department it is necessary, it may require any person, by notice served upon such person, or by regulations, to make such returns, render such statements or keep such records as the department deems sufficient to show whether or not such person is liable to pay or collect tax under this article.

(b) Persons Collecting Tax from Others. Any person liable to collect tax from another person under the provisions of this article shall file reports, keep records, make payments and be subject to interest and penalties as provided for under this article, in the same manner as if he were directly subject to the tax.

(c) Records of Nonresidents. A nonresident who does business in this Commonwealth as a retail dealer shall keep adequate records of such business or businesses and of the tax due with respect thereto, which records shall at all times be retained within this Commonwealth unless retention outside the Commonwealth is authorized by the department. No taxes collected from purchasers shall be sent outside the Commonwealth without the written consent of, and in accordance with conditions prescribed by the department. The department may require a taxpayer who desires to retain records or tax collections outside the Commonwealth to assume reasonable out-of-state audit expenses.

(d) Keeping of Separate Records. Any person doing business as a retail dealer who at the same time is engaged in another business or businesses which do not involve the making of sales taxable under this article, shall keep separate books and records of his businesses so as to show the sales taxable under this article separately from his sales not taxable hereunder. If any such person fails to keep such separate books and records, he shall be liable for tax at the rate designated in section 202 of this article upon the entire purchase price of sales from both or all of his businesses.

(e) Other Methods. In those instances where a vendor gives no sales memoranda or uses registers showing only total sales, the vendor must adopt some method of segregating tax from sales receipts and keep records showing such segregation, all in accordance with proper accounting and business practices.

A vendor may apply to the department for permission to use a collection and recording procedure which will show such information as the law requires with reasonable accuracy and simplicity. Such application must contain a detailed description of the procedure to be adopted. Permission to use the proposed procedure is not to be construed as relieving the vendor from remitting the full amount of tax collected. The department may revoke such permission upon thirty days' notice to the vendor. Refusal of the department to grant permission in advance to use such procedure shall not be construed to invalidate a procedure which upon examination shows such information as the law requires.

72 P.S. § 7271

1971, March 4, P.L. 6, No. 2, art. II, § 271.