Internal Revenue Service
Tax Forms, Instructions & Publications - Current
year tax forms, instructions and publications relevant to the tax treatment
of timber.
(NOTE: There is an error on page 30 of IRS Publication
535, Business Expenses. The paragraph titled "Investment Credit"
is incorrect. The Reforestation Investment Tax Credit is no longer available
for reforestation expenses that occurred after October 22, 2004.)
Industry Specialization Program (ISP) - The IRS initiated the Industry Specialization Program to promote better identification and development of issues to be covered by its Examination personnel in examining tax returns and to ensure uniform and consistent treatment of issues throughout the examination period.
Market Segment Specialization Program (MSSP) - The Market Segment Specialization Program (MSSP) is an Examination program created by the Internal Revenue Service under the umbrella of Compliance 2000. MSSP calls for increasing the level of examiners by establishing teams to conduct an in-depth, internal study of a particular market segment and using that knowledge to develop guidelines specific to the business environment.
Audit Manuals
Timber Casualty Loss Audit Techniques Guide (2011) - This memorandum is intended to provide direction to effectively utilize resources in the classification and examination of a forest industry taxpayer.
Timber Casualty Loss Audit Techniques Guide (2005) - This memorandum is intended to provide direction to effectively utilize resources in the classification and examination of a forest industry taxpayer.
Field Directive on Timber Casualty Losses - This memorandum is intended to provide direction to effectively utilize resources in the classification and examination of a Forestry Industry taxpayer. This LMSB Directive is not an official pronouncement of the law or the Service's position and cannot be used, cited, or relied upon as such.
Timber Industry - These guidelines deal with issues and auditing techniques peculiar to the timber industries and those who derive income from timber transactions. These auditing techniques have been developed from actual examinations.
Appeals Settlement Guidelines: Family Limited Partnerships and Family Limited Liability Corporations - The issues discussed include (1) the appropriate level of discount from the decedent's prorate share; (2) whether the full fair market value of the FLP or FLLC should be included in the decedent's estate because of a lack of substance in the establishment of the FLP or FLLC; (3) whether there is an indirect gift of underlying assets, rather than the FLP or FLLC interests; and (4) whether the accuracy-related penalty for under-appraisal of assets for estate and gift tax purposes should apply. Note that the actual recommendations to auditors are not available in this document. Many timberland owners use FLP's or FLLC's to transfer interests to the next generation. Although there are many non-tax benefits from this estate planning tool, if you are relying on this to provide a significant reduction in the value of your gross estate, you will want to consult your estate attorney to assess possible changes in the viability of your current strategy.