Description
IRS Tax Audit Manual for the Hardwood Timber Industry
Provides general and technical information useful to examiners in classifying, Hardwood Timber Industry.
TABLE OF CONTENTS
- Chapter 1
- Introduction to the Timber Industry
- Differences between Softwood and
- Hardwood Regions 1-1
- Hardwood Lumber Products and
- By-Products 1-1
- Vertical Integration of the Hardwood
- Timber Industry 1-5
- Chapter 2
- Compliance and Audit Issues
- Methodology/Return Analysis 2-1
- Forest Activities Schedule (Form T) 2-2
- Schedule A – Maps 2-2
- Schedule B – Acquisitions 2-2
- Schedule C – Profit or Loss from Land
- and Timber Sales 2-3
- Schedule D – Losses 2-4
- Schedule E – Reforestation and Timber
- Stand Improvement 2-4
- Schedule F – Capital Returnable
- Through Depletion 2-5
- Schedule G – Land Ownership 2-5
- Schedule H – Road Construction 2-5
- Schedule I – Drainage Structures 2-5
- Examination Techniques 2-6
- Compliance 2000 Opportunities 2-9
- Chapter 3
- Income Taxation of Timber Operations
- Timber Income 3-1
- Timber Expenses 3-2
- Capital Expenditures 3-2
- The Land Account 3-3
- The Timber Account 3-4
- The Plantation Sub-Account 3-4
- The Equipment Account 3-5
- Operating Expenses 3-5
- Selling Expenses 3-6
- Establishing Cost or Basis 3-6
- Chapter 4
- Basis in Gifts and Inherited Property 4-1
- Chapter 5
- Employment Taxes Overview 5-1
- Who Are Employees? 5-3
- Statutory Employees 5-4
- Saw Rents 5-6
- Skidder Rentals 5-8
- Chapter 6
- Excise Taxes Overview 6-1
- Computation – Excise Tax 6-3
- Filing Form 2290 6-4
- Fuel Tax Credits and Refunds 6-5
- Claiming the Credit 6-6
- Claiming the Refund 6-6
- Significant Audit Issues 6-6
- Chapter 7
- Other Considerations Reforestation
- Tax Incentives 7-1
- Other Forestry Incentives 7-2
- Use of Specialty Groups 7-2
- Engineering 7-2
- Computer Audit Specialist (CAS) 7-2
- International Examiner 7-2
- Employment tax Specialists 7-2
- Penalties 7-3
- Coordinated Issues 7-3
- Chapter 8
- Selected Timber Rulings and
- Court Cases Access Roads 8-1
- Advance Royalties 8-1
- Capital Assets 8-1
- Capital Gain Versus Ordinary Income 8-2
- Contract Cutting 8-3
- Date of Felling 8-4
- Insects 8-4
- IRC Section 631(a) 8-4
- Stewardship Incentive Program 8-5
- Bibliography B-1
- Glossary G-1
- Preplanning and examining returns relating to this industry
Don’t forget – The IRS Tax Audit Manual for Hardwood Timber Industry is tax deductible as a business expense!