The Market Segment Specialization Program focuses on developing highly trained examiners for a particular market segment. A market segment may be an industry such as construction or entertainment, a profession like attorneys or real estate agents or an issue like passive activity losses. An integral part of the approach used is the development and publication of Audit Techniques Guides. 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 here in Adobe PDF and must be viewed with the Acrobat Reader. Several guides are now also available to View On-Line in HTML.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Alternative Minimum Tax For Individuals - (12/99 304K)
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Discusses brief history of Alternative Minimum Tax (AMT). Provides line-by-line instructions for computing AMT on Form 6251. Includes prior law (prior to 1993) and current law (1993 to 1998).
Auto Body and Repair Industry - (8/95 247K)
Overview of the industry. Discusses some issues that may be encountered - including other sources of income; cost of sales; employment taxes; etc.
Auto Dealerships - (8/2000 719K)
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Discusses books and records, inventory, aftersale financial products and other issues unique to the industry These may include related financial companies, covenant not to compete, advertising associations, etc.
Aviation Tax - (2/99 301K)
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Pertains to excise taxes imposed on commercial and non-commercial aviation. Discusses which set of taxes applies to which type of flights.
Bail Bond Industry - (7/97 230K)
Overview of the industry. Provides terminology. Potential issues include gross income, BUF accounts, collateral, etc.
Bars - refer to Restaurants and Bars below
Carpentry/Framing - (2/99 181K)
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Supplement to the Construction ATG. Provides audit techniques which apply primarily to small businesses engaged in remodeling, home improvement, carpentry, woodworking, framing and residential building.
Coal Excise Tax - (2/98 258K)
Provides excise tax agents with specific tools to examine issues relating to domestically produced coal. Based upon 1993 law.
Commercial Banking - (5/01 701K)
Overview of the industry. Discusses potential issues and terminology unique to banking.
Commercial Printing - (4/97 378K)
Discusses potential issues frequently encountered. Includes cost of sales (work in process), IRC section 263A, omission of certain direct material items from inventory, etc.
Computers, Electronics and High Technology - (3/98 334K)
Discusses inventory, cost of sales, research and development, deferred revenue and international issues.
Construction Industry - (7/98 417K)
Overview of the industry including a glossary. Discusses types of contracts; types of contractors (large, small, home builder); change of accounting method; and joint ventures.
Drywallers - (8/98 101K)
Overview of the industry. Addresses specific aspects of a drywall contractor's business - business/economic environment; relationship with general contractor; cash vs accrual method of accounting.
Farm Hobby Losses (ATG) - (03/01 400K)
This audit techniques guide has been developed to provide guidance to Revenue Agents and Tax Auditors in pursuing the application of IRC Section 183 with respect to horse activities and cattle operations.
Farming - Specific Income Issues and Farm Cooperative - (7/97 98K)
Overview of the industry. Discusses potential for unreported income from primary farm income and nonfarming sources.
Furniture Manufacturing - (7/97 502K)
Overview of industry with emphasis on California businesses. Discusses balance sheet analysis, sale and income issues, cost of goods sold, Maquiladoras and expenses.
Garden Supplies - (2/00 235K)
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Concentrates on retail and wholesale aspects of garden supplies (garden centers and equipment dealers, greenhouses, nurseries and mulch companies). Provides suggested audit techniques for examiners and discusses potential issues.
Garment Contractors - (6/97 289K)
Overview of the industry. Entities responsible for the construction and assembly of garments under supervision of the manufacturer.
Garment Manufacturers - (4/97 340K)
Overview of industry. Entities that design the garment, procure fabric and materials, coordinate all aspects of the construction of the garment and sell finished product to retailers.
Gas Retailers - (12/02 447KB)
Overview of the industry includes flow of products, gasoline suppliers, major oil companies, independent oil companies, minor (unbranded) stations, other suppliers, and surveys.
General Livestock - (4/00 306K)
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Provides a focus on the business of breeding, raising, buying and selling livestock.
Grain Farmers - (PDF file under revision)
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Overview of the industry. Provides terminology. Topics discussed include underreporting of income, employment taxes, accounting methods, government farm programs, etc.
Hardwood Timber Industry - (2/98 366K)
Provides general and technical information useful to examiners in classifying, preplanning and examining returns relating to this industry.
Independent Used Car Dealer - (4/96 442K)
Overview of the industry. Discusses dealers not affiliated with an auto maker, whose principal business is the sale of used cars.
The Laundromat Industry - (6/00 126K)
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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 - (01/01 380K)
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This guide focuses on taxability of law suit awards and settlements.
Low-Income Housing Credit - (10/99 508K)
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Provides examiners with technical support for identifying and developing issues related to IRC section 42.
Manufacturing Industry - (5/98 749K)
Overview of the industry. Emphasis on change of accounting method, IRC section 263A, and inventory.
Masonry and Concrete Industry - (8/98 72K)
Provides industry practices; description of the industry; potential issues and terminology.
Ministers - (4/95 118K)
Discusses several potential issues commonly found on ministers' tax returns. Includes: employee vs. independent contractor, parsonage allowance.
Mobile Food Vendors - (4/95 481K)
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Focuses on food catering trucks and espresso carts.
Mortuaries - (5/93 474K)
Overview of the mortuary and cemetery industry including structure and function; governing laws; industry terminology; accounting practices, etc.
Oil and Gas Industry - (5/96 494K)
Provides information on basic operations and common terminology. Includes reference to royalty owners and an introduction to financial products.
Partnerships - (12/02 3388KB)
The focus is on issues that fall within sections 701 through 761 of the Code (Subchapter K). Subchapter 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 - (2/96 1,247K)
Provides examiners with specific guidance on potential audit issues, issue identification and lead sheets and other job aids. Examples and citation are based on 1994 law.
Pizza Restaurants - (9/95 148K)
Focuses on small, individually owned pizza restaurants. Includes the ingredient markup method for reconstructing income.
Placer Mining - (7/99 181K)
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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.
Poultry Industry - (12/02 1568KB)
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.
The Port Project - (8/95 282K)
Provides examiners assistance in auditing industries related to coastal and inland waterways.
Reforestation Industry - (8/95 120K)
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Overview of the industry. Discusses some issues that may be encountered - including employment taxes; poor accounting records; etc.
Rehabilitation Tax Credit - (2/02 353K)
Provides examiners with audit aids (i.e. issue checksheet, pro forma Information Document Request, and standardized audit reports, etc.) which assist in identifying and addressing common rehab tax credit issues.
Restaurants and Bars - (4/03 514K)
Overview of the industry includes recordkeeping, inventory, points of sale, profit and loss statements, expenses, balance sheets, and employment tax issues.
Retail Gift Shop - (12/02 489KB)
Overview of the industry includes method of accounting, inventory accounting methods, contributions of inventory, and various income issues.
Retail Liquor Industry - (7/97 299K)
Overview of the industry with respect to the state of Massachusetts. Provides examiners with background information on the industry.
Scrap Metal Industry - (2/99 245K)
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Provides overview of industry, glossary and examination techniques for both purchasers and sellers of scrap metal.
Shareholder Loan (ATG) - (06/01 254K)
This guide has been developed to provide guidance in addressing arm's length concerns, the timing of interest recognition, and the allocation of interest and principal. This guide addresses only issues regarding loans to shareholders.
Sports Franchises - (8/99 411K)
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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.
Swine Farm Industry - (12/02 920KB)
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 - (3/96 174K)
Focuses on techniques for examining tobacco farmers, dealers and warehouse operations.
Veterinary Medicine - (2/99 227K)
Overview of industry includes discussion of types of business entities (especially personal service corporation); cash vs accrual method of accounting; and inventory vs supplies.
Looking for other Audit Techniques Guides? Many additional titles are now available for sale by the Superintendent of Documents.
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