IRS Tax Audit Manual  for The Port Project (Water Transportation – Port Related Industries) provides examiners assistance in auditing industries related to coastal and inland waterways.

TABLE OF CONTENTS

• Foreword vii
• Chapter 1, Introduction
  • Definition 1-1
  • Scope 1-1
  • Selection 1-1
  • Purpose 1-2
• Chapter 2, Port Related Industries
  • Introduction 2-1
  • Chandlers 2-1
  • Customs Brokers 2-1
  • Freight Broker/Forwarder 2-1
  • Pilot 2-2
  • Port Captain 2-2
  • Ship and Barge Construction and Repair 2-2
  • Ship Terminal 2-2
  • Steamship Agents 2-2
  • Steamship Line 2-2
  • Stevedores/Longshoremen 2-3
  • Towboat Services 2-3
  • Trucking and Warehousing 2-3
  • Miscellaneous 2-4
• Chapter 3, Shipping ISP
  • Introduction 3-1
  • Sourcing Income 3-1
  • Capital Construction Fund 3-4
  • Excise Tax 3-5
  • Taxation of Foreign Entities and Nonresident Aliens (NRAs) 3-6
• Chapter 4, Accounting Methods
  • Introduction 4-1
  • Ship Owners and Operators – Voyage Accounting 4-1
  • Revenue Procedure 71-21 4-3
  • Shipping Agents 4-3
  • Barge Companies 4-4
  • Ship Construction Companies 4-4
  • Ship Repair Companies 4-5
  • Trucking Companies 4-5
• Chapter 5, Income
  • Introduction 5-1
  • Unusual Types 5-1
  • Steamship Agents 5-1
  • Wharfage Fee 5-2
  • Trucking Companies 5-2
  • Surveyors 5-2
  • Barge Companies 5-2
  • Stevedore Income 5-3
• Chapter 6, Repairs
  • Introduction 6-1
  • First Common Area 6-1
  • Second Common Area 6-1
• Chapter 7, Employment Tax
  • Introduction 7-1
  • Meals and Lodging 7-1
  • Services Performed for Foreign Vessels 7-2
  • Services Performed for United States Vessels 7-2
  • Stevedores 7-3
  • Ship Pilots 7-3
• Chapter 8, Drawbacks
  • In General 8-1
  • Types of Drawbacks 8-1
  • Income Tax Issues and Proper Accounting for Drawbacks 8-2
  • Procedures for Filing and Documentation Maintained 8-3
  • Time Limitations, Time for Filing, and Liquidation of Claims 8-4
  • Time Limitations 8-4
  • Time for Filing 8-4
  • Liquidation of Claims 8-4
  • Problems with the Application of Drawbacks 8-4
  • Recommended Audit Techniques 8-5
• Chapter 9, Illegal Bribes and Kickbacks
  • General Background 9-1
  • Audit Techniques 9-1
  • Law 9-2
  • Court Cases 9-3
• Chapter 10, Miscellaneous
  • Industrial Development Bonds 10-1
  • Travel and Entertainment 10-1
  • Shareholder Personal Expenses 10-2
  • Loans to Shareholders 10-2
  • Port Pilots:
  • Background 10-3
  • Business Entity 10-3
  • Issues 10-4
• Glossary
  • Introduction G-1
  • General Terms G-1
  • Individuals or Other Entities Who Work in Port-Related Industries G-3
  • Types of Business Charters G-4
  • Documentation and Accounting Terminology G-5
  • Types of Vessels and Their Parts G-7
  • Types of Vessels G-7
  • Parts of Barges G-8