Tax Audit - Construction Industry Edition Ebook

TABLE OF CONTENTS

Chapter 1

• Unit Price Contracts 1-9
• Types of Contracts 1-8
• Time and Material Contracts 1-9
• The Contracting Process 1-6
• The Construction Industry as a
• Surety Companies 1-5
• Subcontractors 1-3
• Short-Term Contracts 1-8
• Scheduling Subcontractors 1-7
• Residential Construction Developer 1-3
• Participants in the Construction Industry 1-1
• Notice of Completion 1-11
• Multiple Roles 1-5
• Material Suppliers 1-5
• Market Segment 1-1
• Long-Term Contracts 1-8
• Industry Intended Audience 1-1
• Highway Contractors 1-4
• Heavy Construction Contractors 1-4
• General/Prime Contractors 1-2
• Fixed Price or Lump Sum Contracts 1-8
• Cost-Plus Contracts 1-8
• Contractors 1-1
• Contract Income 1-7
• Construction Managers 1-2
• Construction Lenders 1-5
• Commercial Project Owners 1-3
• Commercial Contractors 1-2
• Change Orders 1-9
• Building Permits 1-10
• Bonding 1-10
• Architect/Engineers 1-4

• Work Comparison Method 2-3
• Underreported Income 2-13
• Small Contractors Long-Term Contracts 2-1
• Schedule M-1 Adjustments 2-17
• Potential Issues and Audit Techniques 2-10
• Percentage of Completion Method 2-2
• Obtaining Audit Information 2-10
• Miscellaneous Construction Issues 2-14
• Income Recognition Issues 2-12
• Income Omission Issues 2-13
• General Guidelines For Examiner 2-9
• General Background 2-4
• Cost Comparison Method 2-2
• Completed Contract Method 2-3
• Cash Versus Accrual 2-4
• Cash Method 2-1
• Alternative Minimum Tax 2-10
• Accrual Method 2-2

• Under the Look-Back Method for
• Under IRC Section 460 3-1
• Ten Percent Election 3-2
• Suggested Audit Techniques 3-34
• Special Rules for Cost-plus and Federal
• Simplified Cost-to-Cost Method 3-4
• Severing of Construction or Manufacturing
• Revenue Earned Allocations Rules 3-4
• Look-Back 3-20 Form 8697,
• Long-Term Contracts 3-21
• Long-Term Contracts 3-11
• Large Contractors Long-Term Contracts
• Interest Computation
• Information Generally Needed to Audit a
• Gross Receipts Test 3-3
• Definition of Long Term Contracts 3-1
• Contracts Subject to IRC section 460 3-2
• Contracts Exempt form IRC section 460 3-2
• Contracts 3-18
• Contracts 3-14
• Construction Company 3-34
• Computation of the Look-Back Method 3-29
• Allocation of Costs to Long-Term Contracts 3-5
• Aggregation of Construction or Manufacturing