Since the IRS can audit tax records seven years back, all tax-related documents should be retained at least that long. Litigation-related requirements, however, are much more complex, less explicit and more adaptable to specific company objectives. Litigation-related considerations are essential to a good record retention policy. Several recent cases illustrate this point. During the antitrust prosecution of Microsoft the government was able to obtain documents from Microsoft, including e-mails, that suggested the company was acting in an anticompetitive manner.
Similar problems occur for any company embroiled in unintended litigation.
Following a proper document retention policy can avoid such problems. Although top management usually establishes a document retention policy, the CIO has a significant role based on the move to electronic documents. Any policy must be feasible given the company's personnel and equipment, including information systems. Furthermore, the locating of records during litigation will often fall to the IS department, which maintains the records. Thus a CIO's input on the creation and content of a document retention policy is in everybody's best interest.