Description

IRS Tax Audit Manual for Farming: Specific Income Issues and Farm Cooperatives 

Overview of the industry. Discusses potential for unreported income from primary farm income and non-farming sources…..

TABLE OF CONTENTS

• Chapter 1
  • Unreported Income 1-1
• Chapter 2
  • Unreported Income of By-Products and
  • Secondary Sources of Income 2-1
• Chapter 3
  • Examining Farmer Income Records 3-1
• Chapter 4
  • Gross v. Net Proceeds 4-1
• Chapter 5
  • Government Farm Programs Commodity
  • Credit Corporation Loans (CCC Loans) 5-1
  • Effect on Income When Election Under
  • IRC section 77 Has Been Made 5-1
  • Effect on Income When No Election
  • Has Been Made 5-2
  • Market Gain Resulting From CCC Loans 5-2
  • Commodity Certificates 5-3
  • Using Certificates to Pay Off CCC Loans
  • (“PIK and Roll”) 5-4
  • Using Certificates to Pay Off CCC Loans When
  • No IRC section 77 Election Has Been Made 5-4
  • Using Certificates to Pay Off CCC Loans When
  • An IRC section 77 Election Has Been Made 5-5
  • Certain Cost-Sharing Payments 5-5
  • Conservation Reserve Program (CRP) 5-6
  • Crop Insurance and Disaster Payments 5-7
  • Dairy Termination Program (Milk Production
  • Termination Program or Dairy Herd Buy-Out Program 5-8
  • Deficiency Payments 5-8
  • Diversion and Set-Aside Payments 5-9
  • Farm and Warehouse Storage 5-9
• Chapter 6
  • Cooperatives Background 6-1
  • Delivery Debentures 6-2
  • Base Capital Plan 6-3
  • Audit Techniques for Cooperative Transactions 6-4
  • Checks payable Jointly to Lien Holder and Farmer 6-5
  • Cooperative Expenses 6-5
• Chapter 7
  • Rules of Thumb and Other Information on
  • Farming Livestock 7-1
  • Cattle 7-2
  • Dairy 7-2
  • Poultry 7-3
  • Sheep 7-3
  • Swine (Hogs) 7-3
  • Horses 7-4
  • Row Crops 7-4
  • Tenant Farmers/Crop Sharing 7-4
  • Double Cropping 7-4
  • Wheat-Beans 7-5
  • No-Till 7-5
• Chapter 8
  • Other Farm Related Issues Agricultural Labor 8-1
  • Discharge of Qualified Farm Indebtedness 8-1
  • Family Partnerships 8-1
  • Fertilizer Costs 8-1
  • Involuntary Conversion 8-1
  • Landclearing Expenses 8-1
  • Method of Accounting for Corporations
  • Engaged in Farming 8-1
  • Recapture of Soil Conservation and
  • Land Clearing Expenses 8-1
  • Soil Conservation Expenditures 8-2
  • Unharvested Crops Sold with Land 8-2