Tax Audit - Bars & Restaurants Edition Ebook

TABLE OF CONTENTS

CHAPTER 1: BACKGROUND/GENERAL INFORMATION

• Overview of the Industry 1-1
• Operating Ratios 1-2
• Financial Aspects 1-1
• Books and Records 1-2

• Pre-Audit Planning 2-1
• Initial Interview 2-2
• Initial Information Document Requests
• Examination 2-1
• (IDR's) 2-2

• Unreported Income 3-2
• Stale Checks 3-3
• Loans to Shareholders 3-6
• Inventory 3-4
• IRM 4231 for Inventories 3-4
• Fixed Assets 3-7
• Examination 3-1
• Cash 3-2
• Audit Techniques 3-6
• Audit Techniques 3-3
• Audit Technique 3-2

• Sales 4-1
• Other Income 4-8
• Other Activities 4-8
• Income from Coin-Operated Activities 4-8
• Income From the Sale of Food 4-2
• Income From the Bar 4-4
• Examination 4-1
• Costs of Goods Sold 4-8
• Audit Technique 4-1

• Tip Rate Determination/Education Program 5-6
• Tip Income 5-3
• Summary 5-8
• Overview of Program 5-6
• IRM 4034 5-1
• Examination Techniques Used to
• Examination 5-1
• Employment Taxes 5-2
• Discussion of McQuatters Formula 5-7
• Determine Tip Income 5-7
• Allocation of Tips - IRC Section 6053(b) 5-4