TABLE OF CONTENTS

• Chapter 1 IRC section 447 – Accrual versus Cash
  • Introduction
  • Prior Law IRC section 447
  • Gross Receipts Test Family Corporations IRC section 481
  • Recapture Rules
  • Suspense Account Audit Technique
• Chapter 2 Farm Price Inventory
  • Introduction
  • Inventories Farm
  • Price Method
  • Farm Price Method and The Swine Industry
  • Garth vs. Commissioner
  • Farm Inventory Market
  • Market Conversion Yield
  • Record Keeping Cost of Disposition
• Chapter 3 Unit Livestock Price
  • Introduction
  • General Livestock
  • IRC section 263A
  • Audit Techniques
  • Effective Date and Method Changes
  • Resource Cites Transfer of Inventory
• Chapter 4 Prepaid Feed
  • Introduction
  • Cash Basis
  • Taxpayer Revenue Ruling 79-229, 1979-2 C.B. 210
  • Payment for Feed Versus Deposit
  • Business Purpose Versus Tax Avoidance Distortion of Income
  • Internal Revenue Code section 464(f)
  • Limitation Case Scenario
  • Payment for Feed Versus Deposit
  • Business Purpose or Tax Avoidance Distortion of Income
  • Case Law Audit Techniques
• Chapter 5 Income from Discharge of Indebtedness
  • Introduction
  • IRC section 108
  • Income from Discharge of Indebtedness
  • Definition of Farming
  • Qualified Farm Indebtedness
  • Qualified Person Limitation
  • Amount and Manner of Reduction
  • IRC section 1017
  • Forgiveness of Shareholder Debt
  • Acquisition of Debt by Related Party
  • Audit Techniques
• Chapter 6 Selection Fees
  • Introduction
  • Case Scenario
  • Related Issues
  • Audit Techniques
• Chapter 7 Depreciation
  • IRC section 167(a)
  • IRC section 168
  • IRC section 168(b)
    • Depreciation Methods Chart
  • IRC section 263
    • Depreciation
    • Accounting Method Changes
    • Swine Farm Components
    • Roads Water Wells
    • Single Purpose Agriculture Structures
    • Other Farm Buildings
    • Lagoons
    • Certified Pollution Control
    • Facility Irrigation Systems
    • Spray Fields
    • Other Farm Equipment
    • Swine Depreciation of Land Improvements
• Chapter 8 Grower Issues
  • Introduction
  • Income Expenses
  • Depreciation Interest
  • Utilities Insurance
  • Miscellaneous
  • Net Check
  • Double Deduction Section 469
  • Passive Activities
  • Material Participation
  • Recharacterization of self-rental income
  • Alternative Minimum Tax Corporate
  • Minimum Tax Income
  • Averaging Audit Techniques
• Chapter 9 Penalties
  • Overview
  • Penalty Relief
  • Reasonable Cause
  • Statutory Exceptions
  • Administrative Waiver
  • Requesting Penalty Relief
  • Deficiency Procedures Accuracy
  • Related Penalty IRC section 6662
  • General – All Components of IRC section 6662
  • Negligence or Disregard of Rules or Regulations – IRC section 6662(c)
  • Substantial Understatement – IRC section 6662(d)
  • Substantial Valuation Misstatement – IRC section 6662(e)
  • Fraud Penalty – IRC section 6663
  • Failure to File Tax Return or to Pay Tax – IRC section 6651
  • Delinquency (Failure to File) – IRC section 6651(a)(1)
  • Failure to Pay on Notice and Demand – IRC section 6651(a)(2)
  • Fraudulent Failure to File – IRC section 6651(f)
  • Failure to File A Partnership Return Penalty – IRC section 6698
• Chapter 10 Research Credits
  • Introduction
  • IRC section 41 Basic Research
    • Credit Base Amount
  • IRC section 174 Qualified Research Audit Techniques
• Chapter 11
  • Employment Taxes
  • Farm Workers
  • Behavioral Control
  • Financial Control
  • Relationship of the Parties
  • Withholding on Employees
• Chapter 12 Excise Taxes
  • Gasoline Tax
  • Credits
  • Definitions
  • Taking the Credit
  • Audit Techniques