Are you aware that the IRS has certain Audit Techniques that target certain industries? The IRS has gotten very sophisticated over the years and have developed program guides for certain industries.
The IRS has used all their resources and have complied ways to make sure you are paying your fair share of tax. They have trained auditors for particular market segments. Read below and you will find some of the Market Specialization Programs.
It would be in your very best interest to hire Former IRS Agents to represent you in your audit. We know all the ins and outs and can minimize your damages.
Collectively, we have over 100 years of direct tax experience. Do not go into these audits alone!
IRS Audit Techniques Guides
The Audit Techniques Guides focus on developing highly trained examiners for particular market segments. These Guides contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations. Audit Techniques Guides are available in Adobe PDF, or as HTML Web pages, or both. The PDF versions must be viewed with the Acrobat Reader.
Aerospace Industry
The Service has prepared a comprehensive audit technique guide to assist examiners in evaluating research credit in the aerospace industry. The guide focuses on the particular unique aspects of the industry and provides examiners tools and tests to utilize in evaluating and auditing research credit.
Air Transportation Audit Technique Guide
Overview of excise tax paid for transportation of persons or property by air.
Cash Intensive Businesses Audit Techniques Guide
Businesses that have substantial cash transactions are included in the consolidated Cash Intensive Businesses Audit Techniques Guide. Some of these businesses include bail bonds, beauty shops, car washes, check cashing establishments, coin operated amusements, laundromats, scrap metal, and some convenience stores. Guidance is also provided on examination of income, interview techniques, and evaluation of evidence.
Child Care Provider Audit Technique Guide
The Child Care Provider Audit Technique Guide is intended to provide guidance to the examiner who is auditing a taxpayer in this industry and to provide tax related guidance to taxpayers and other professionals in this industry.
Provides excise tax agents with specific tools to examine issues relating to domestically produced coal.
Commercial Banking
Overview of the industry. Discusses potential issues and terminology unique to banking.
Construction Industry
Overview of the industry including a glossary. Discusses types of contracts; types of contractors; methods of accounting; and joint ventures. This updated guide includes the filing locations for Rev. Proc. 92-29 elections (Chpt 7); includes contractor square footage costs (Chpt. 11); and common errors in look-back interest filings (Chpt. 5).
Cost Segregation Audit Techniques Guide
The Service has prepared a comprehensive audit techniques guide to assist examiners in evaluating cost segregation studies submitted by taxpayers in support of depreciation deductions. The guide is also beneficial for taxpayers and practitioners in preparing these studies.
This Audit Techniques Guide sets forth the Research Credit Technical Advisory’ suggested guidelines for auditing research credit issues.
Corporate executives often receive extraordinary fringe benefits that are not provided to other corporate employees. Any property or service that an executive receives in lieu of or in addition to regular taxable wages is a fringe benefit that may be subject to taxation.
This audit techniques guide focuses on a strategy in which multinational corporations use factoring of accounts receivable among related parties to avoid U.S. taxation by shifting income offshore and reducing U.S. income by deducting expenses related to the same income.
]Farmers Audit Techniques Guide
The Agriculture Industry Audit Techniques Guide (ATG) focuses on developing highly trained examiners for the Agricultural market segment. The Guide contains examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations.
This audit techniques guide was designed to assist the examiner in conducting audits where Excise Tax of Foreign Insurance transactions may be due.
Golden Parachutes Audit Techniques Guide
The Service has prepared a comprehensive audit techniques guide to assist examiners in evaluating parachute examinations. The parachute examination can occur during the examination of either the corporation’s or the individual’s return.
Hardwood Timber Industry
Provides general and technical information useful to examiners in classifying, pre-planning and examining returns relating to this industry.
Inland Waterways
This audit technique guide is intended to provide assistance to the examiner who is auditing a taxpayer for which the use of the Inland Waterways is an issue.
IRC 162(m) Salary Deduction Limitation Audit Techniques Guide
Every publicly held corporation maintains its executive compensation records differently. Likewise, every publicly held corporation maintains different methods for compensating its executives. As the examining agent, you must first learn the identity of the individual(s) within the corporation who are most familiar with how the executive compensation records are maintained.
IRC § 183: Activities Not Engaged in For Profit Audit Techniques Guide
This audit technique guide (ATG) has been developed to provide guidance to Revenue Agents and Tax Compliance Officers in pursuing the application of IRC § 183, Activities Not Engaged in for Profit (sometimes referred to as the “hobby loss rule”).
The Laundromat Industry
Provides an explanation of water consumption analysis for reconstructing unreported income from the operation of a laundromat. This method is to be used only when there is a reasonable indication of unreported income.
Lawsuit Awards and Settlements
This guide focuses on tax-ability of law suit awards and settlements.
Ministers Audit Technique Guide
The Ministers Audit Technique Guide is intended to provide guidance to the examiner who is auditing a taxpayer who is a minister and to provide tax related guidance to taxpayers and other professionals in this industry.
New Markets Tax Credit
The New Markets Tax Credit (NMTC) Program, enacted by Congress as part of the Community Renewal Tax Relief Act of 2000, is incorporated as section 45D of the Internal Revenue Code. This Code section permits individual and corporate taxpayers to receive a credit against federal income taxes for making Qualified Equity Investments (QEIs) in qualified community development entities (CDEs).
New Vehicle Dealership Audit Technique Guide
This guide will give you the key to a quick and competent closure of any new vehicle dealership examination which hinges on narrowing the scope of the examination to items that may prove productive.
Non-Qualified Deferred Compensation Audit Technique Guide
The Service has prepared a comprehensive audit techniques guide to assist examiners in evaluating non-qualified deferred compensation. A non-qualified deferred compensation (NQDC) plan is any elective or non elective plan, agreement, method, or arrangement between an employer and an employee (or service recipient and service provider) to pay the employee compensation some time in the future.
Oil and Gas Industry
Provides information on basic operations and common terminology. Includes reference to royalty owners and an introduction to financial products.
Ozone Depleting Chemicals (ODC) Excise Tax Audit Techniques Guide
This is the Audit Techniques Guide for Ozone Depleting Chemicals (ODC).
Partnerships
Publication Date: See Table of Contents for Publication/Revision Date of the individual Chapters
The focus is on issues that fall within sections 701 through 761 of the Code (Sub-chapter K). Sub-chapter K deals primarily with the formation, operation, and termination of partnerships. Many issues arise during the initial or final year of the partnership.
Passive Activity Losses
Provides examiners with specific guidance on potential audit issues, issue identification and lead sheets and other job aids.
Placer Mining
Provides guidelines for the examination of taxpayers in this industry. Focuses on small mining operations represented as sole proprietorships on Schedule C, but can be adapted for partnership and corporate returns.
The Port Project
Provides examiners assistance in auditing industries related to coastal and inland waterways.
Poultry Industry
The purpose of this guide is to highlight issues that are specific to or have a large impact on the poultry industry. Most of the issues in this guide relate directly to the major companies rather than the individual farmers. However, one chapter has been devoted to the issues normally found in conjunction with a poultry grower audit.
Reforestation Industry
Overview of the industry. Discusses some issues that may be encountered – including employment taxes; poor accounting records; etc.
Rehabilitation Tax Credit
Provides examiners with audit aids (i.e. issue check sheet, pro forma Information Document Request, and standardized audit reports, etc.) which assist in identifying and addressing common rehab tax credit issues.
Research Credit Claims Audit Techniques Guide : Credit for Increasing Research Activities § 41
Publication Date: See table of contents for publication/revision date for the individual chapters, exhibits, and letters & forms. This guide provides guidance on the handling and evaluation of research credit claims.
Retail Industry
Publication Date: 2/2009
Overview of the Retail Industry.
Purposes of § 38 for any taxable year is the sum of the credits listed in § 46. Section 1307(a) of the Energy Tax Incentives Act of 2005, Pub. L. 109-58, 119 Stat. 594 (August 8, 2005), amended § 46 to add two new credits to that list:The qualifying advanced coal project credit, (section 48A) and the qualifying classification project credit, (section 48B).
Split Dollar Life Insurance Audit Techniques Guide
Split-dollar life insurance arrangements can be a key feature of executive compensation packages. Over the years, the Service has provided limited guidance regarding the taxation of these arrangements. Beginning in 2001, transitional guidance on the valuation of split-dollar life insurance arrangements was provided in the form of notices and proposed regulations in anticipation of final regulations.
Sports Franchises
Focuses on major league franchises. Potential issues may include revenue (sponsorship, broadcast, season tickets), strike fund payments, stadium issues, player contracts, purchase/sale of franchise, league expansion, etc.
Stock Based Compensation Audit Techniques Guide
Audit techniques guide to assist examiners in evaluating stock-based compensation. Stock-based compensation generally consists of either the transferring of stock or the issuance of stock options to an employee or independent contractor.
Structured Settlement Factoring Audit Technique Guide
Structured Settlement Factoring
Swine Farm Industry
Overview of the industry includes methods of accounting (accrual vs. cash), farm price inventory, unit livestock price, prepaid feed, income from discharge of indebtedness, selection fees, depreciation, grower issues, penalties, research credits, employment taxes, and excise taxes.
Tobacco Industry
Focuses on techniques for examining tobacco farmers, dealers and warehouse operations.
Veterinary Medicine
Overview of industry includes discussion of types of business entities (especially personal service corporation); cash vs. accrual method of accounting; and inventory vs. supplies.
IRS Audit Techniques – Hire Former IRS Agents – Market Specialization
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