Sub-Section 111, Purpose
Internal Revenue Manual
Specialized Industries Guidelines - Timber
Sub-Section 111, Purpose
Last amended: 6-26-1978
Purpose
(1) These guidelines have been prepared to assist field agents in the examination of income tax returns of forest industry taxpayers and others who derive income from timber transactions.
(2) These guidelines should help reduce the time required to learn the skills needed for auditing returns that give rise to timber related issues. The examiner should use initiative and ingenuity as well, since the techniques suggested here are not mandatory and are surely not all inclusive.
(3) It is required by IRM 4216.12 that certain returns be referred for engineering assistance on examination. Complex timber related issues that should be considered by a professional forester may, nevertheless, be involved in returns where referral is not required. whether such cases should be referred is a matter to be decided by the agent and the group manager.