Introduction - Timber Casualty Loss Audit Techniques Guide
Publication Date: April 2011
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.
1. Introduction
The purpose of this Audit Technique Guide is to provide guidance on conducting income tax examinations with a Timber Casualty Loss. It incorporates procedures and techniques that are known to be practical or unique to a Timber Casualty Loss that when combined with the examiner’s good judgment, skill and experience to complete the examination within the shortest possible time with the least burden possible to the taxpayer. Use of these techniques does not imply that the object of the examination is to find a deficiency, but rather to determine whether the reported Timber Casualty Loss has been accurately reported.
Because the facts and circumstances of each taxpayer are unique, the procedures applied will be slightly different in every examination, and the strategy will remain dynamic. The examiner will combine the techniques that apply to each specific case and apply his or her basic knowledge to the practical situation at hand.
This Timber Casualty Loss Audit Technique Guide is intended to provide direction and effectively utilize resources in the examination of a forest industry taxpayer.