Farmers: IRS Audit Techniques Guide

by Internal Revenue Service

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This guide has been written to provide you with a general understanding of the farming operation. It is important to have an understanding of the various facets of a farm operation in order to adapt auditing techniques to different situations. Agriculture continues to be the major industry in many states. CAUTION: Agriculture is subject to both economic and weather fluxuations. Production and yeild differences may exist between different areas of the country or even within a state. Examiners need to be conscious of these elements that may affect the examination. There are several reasons why farming might lend itself to underreporting income. Some of these reasons are: 1. Most income is received from non-information return sources. 2. Crops are not sold on a daily basis. 3. Books may be very elementary (e.g., a single entry system). 4. There may be a lack of internal control since the farmer is responsible for receiving, recording and depositing all income. 5. There may be no internal controls...
  • ISBN10 1304134237
  • ISBN13 9781304134233
  • Publish Date 13 June 2013
  • Publish Status Active
  • Publish Country GB
  • Imprint Lulu.com
  • Format Paperback
  • Pages 83
  • Language English