Farming - Specific Income Issues and Farm Cooperatives: IRS Audit Techniques Guide

by Internal Revenue Service

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Book cover for Farming - Specific Income Issues and Farm Cooperatives: IRS Audit Techniques Guide

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The initial interview can be an important tool for gathering information to access the potential for unreported income. Your goal in the interview is to gain an understanding of the farmer's operation. By ascertaining the capacity for production, you can determine the potential for unreported income from primary farm income. By determining the nature of the operation, you can determine the potential for by-products, waste, and other sources of income related to the farming operation. By determining the taxpayer's financial status you can better assess the potential for income from nonfarming sources. Account for the production limits to get an estimate of the income potential. For example, compare the acres owned and rented to the yield accounted for with sales. Ask the taxpayer how many acres of each crop was planted, what the yield per acre was, and the price it brought.
  • ISBN10 1304134202
  • ISBN13 9781304134202
  • Publish Date 13 June 2013
  • Publish Status Active
  • Publish Country GB
  • Imprint Lulu.com
  • Format Paperback
  • Pages 44
  • Language English