Timber Casualty Loss Audit Techniques Guide
Publication Date: September 2005
NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.
This material was designed specifically for training purposes only. Under no circumstances should the contents be used or cited as sustaining a technical position.
Table Of Contents
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1. Introduction
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2. Determining Audit Scope and Depth
- Pre-Audit Analysis/Return Review
- Materiality Considerations
- Referrals to IRS Foresters
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3. Identification of Property Unit
- Single Identifiable Property (SIP) - In General
- Accounting Records
- Geographic Boundaries
- Determine the SIP used to compute casualty losses
- Consequences associated with the SIP
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4. Basis Verification (SIP Basis)
- Form T
- Accounting Records
- Retroactive Basis Determinations
- Examination Issues
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5. Verification of "Volume Loss"
- Introduction
- Field Sampling Techniques
- Corporate Inventory Systems
- Harvest Records
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6. Diminution of FMV: Verification
- Requirement to value SIP Before and After casualty
- Accepted Appraisal Techniques
- Comparable Sales
- Income Methods
- Other Methods
- Performing an Appraisal Review
- Nonconforming Valuation Methods
- Accepted Appraisal Techniques
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7. Computations
- Loss Computation
- Reconciliation of Form T
- Adjusting Remaining Basis
- Form T. Examples
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8. References
- Initial IDR
- Timber Terminology Relating to Casualty Losses
- IRS Foresters Contact Information
- Reference Material
- Sec. 165 Regulations
- Sec. 611 Regulations