Description
IRS Tax Audit Manual for the Mobile Food Vendors Industry
Focuses on food catering trucks and espresso carts.
TABLE OF CONTENTS
- Chapter 1 Introduction
- Purpose 1-1
- Determining the Focus 1-1
- Industry Background 1-1
- Espresso Vendors 1-1
- Food Catering Trucks 1-3
- Chapter 2 How to Identify Vendors and Tax Returns
- County Health Department 2-1
- Site-Plan Review 2-1
- Locating Vendors 2-1
- City Licensing Bureaus 2-1
- Newspapers and Magazines 2-2
- State or Local Industry Group 2-2
- Summary 2-2
- Chapter 3 Introduction to the Audit
- Pre-Audit 3-1
- Books and Records 3-2
- Document Request 3-2
- Areas of Consideration 3-3
- Accounting Method 3-3
- Purchases 3-4
- Inventories 3-4
- Sales Tax 3-4
- Mark-up 3-4
- Car Expenses 3-4
- Home Office Deduction 3-5
- Supplies 3-5
- Initial Interview 3-5
- Chapter 4 Audit Issues Gross Receipts 4-1
- Inventory and Cost of Goods Sold (COGS) 4-1
- Operating Expenses 4-2
- Bad Debts 4-2
- Car and Truck Expenses 4-3
- Depreciation and IRC Section 179 Deductions 4-3
- Interest Expense 4-3
- Rent or Lease Expense 4-4
- Taxes and Licenses 4-4
- Wages and Salaries Expenses 4-5
- Home Office Deduction 4-5
- Gains and Losses 4-5
- Summary 4-6
- Chapter 5 Audit Techniques Income in General 5-1
- Screening and Pre-audit Considerations 5-2
- Consideration of Internal Controls 5-2
- Consideration of Personal Use 5-3
- Consideration of Returns and Allowances 5-3
- Estimating Techniques 5-3
- Gross Receipts — Mobile Catering Trucks 5-4
- Estimating Techniques 5-4
- Additional Considerations 5-6
- Gross Receipts — Espresso Vendors 5-6
- Screening and Pre-audit Considerations 5-6
- Consideration of Internal Controls 5-7
- Estimating Techniques 5-9
- Estimating Income from the Sale of Espresso 5-10
- Estimating Income from the Sale of Italian Sodas 5-13
- Estimating Income from the Sale of Baked Goods 5-13
- Estimating Sales of Coffee Drinks Based on Milk Products 5-14
- Estimating Income from the Sale of Other Items 5-15
- Additional Considerations 5-16
- In Depth Procedures such as Indirect Methods 5-17
- Other Applications 5-17
- Inventory and Cost of Goods Sold 5-18
- Spoilage 5-19
- Operating Expenses 5-20
- Bad Debts 5-20
- Car and Truck Expenses 5-20
- Depreciation and IRC Section 179 Deductions 5-20
- Interest Expense 5-21
- Rent or Lease Expense 5-21
- Taxes and Licenses 5-22
- Wages and Salaries Expense 5-23
- Home Office Deduction 5-24
- Gains and Losses 5-24
- Summary 5-25
- Chapter 6 Employment Taxes Employee or Independent Contractor 6-1
- IRC Section 530 6-3
- Chapter 7 Back-Up Withholding
- Internal Revenue Code Section 3406 7-1
- Abatement of Back-Up Withholding (IRM 4652) 7-2
- AIMS Procedures 7-3
- Procedures for Asserting Back-Up Withholding (IRM 4696) 7-3
- Substitute for Return Procedures (IRM 48(13)1) 7-3
- Chapter 8 Penalties General 8-1
- Criminal Fraud Penalty: (IRC section 7201) 8-1
- Civil Fraud Penalty: (IRC section 6663) 8-2
- Accuracy-Related Penalty: (IRC section 6662) 8-2
- Failure to File Correct Information Returns: (IRC section 6721) 8-3
- Failure to Furnish Correct Payee Statements: (IRC section 6722) 8-4
- Chapter 9 Compliance 2000 General 9-1
- Compliance 9-1
- Underreported Income 9-1
- Summary 9-2
- Glossary
- Accounting Terminology G-1
- Food Catering Truck Terminology G-2
- Espresso Terminology G-2
- Tasting Terminology G-4
- Espresso Drinks G-6