While You Are Panning For Gold, The Internal Revenue Service Is Panning YOU For An Audit! NEVER AGAIN EXPERIENCE THE FEAR ASSOCIATED WITH AN AUDIT BY THE INTERNAL REVENUE SERVICE!
The SECRET IRS MANUAL written specifically for Internal Revenue Service Audit Agents to use while conducting audits of the Placer Mining Industry.
Placer mining is a special open cut method for exploiting deposits of sand or gravel containing workable a mounts of valuable minerals. Native gold is the most important placer mineral, but platinum and tin are also found in gravels. Minerals also include zircon, diamond, ruby, and other gems.
This selection of Uncle Sam's Tax Audit Assistant represents a guideline for the examinations of taxpayers in the Placer Mining Industry. This guide focuses on small mining operations represented as sole proprietorships on Schedule C, but it can be adapted for partnership and corporate returns.
Why The Placer Mining Industry Is A Target
Major operators produce the bulk of gold recovered and refined, but small-scale, independent miners make up the majority of the tax returns filed. Mining has historically been a cash-based activity. Often the miner will have little, if any, documentation to support the activity. If there are records, they are often disorganized. Hand-written receipts are common. This guide addresses some specific problem areas encountered in the examination of the smaller mining operations, with emphasis on the placer miner.
