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