Hardwood Timber Industry

The IRS issued a new Audit Technique Guide (ATG) for the hardwood timber industry to be used by examiners auditing taxpayers associated with the industry, including landowners, loggers, truckers, and sawmills. The ATG covers (1) Form T Forest Activities Schedule, (2) income taxation of timber operations, (3) basis in gifts and inherited property, (5) employment taxes, including saw rentals and skidder rentals, (6) excise taxes (fuel tax credits and refunds), and (7) other tax considerations (e.g., reforestation, Christmas trees, and forestry incentive cost-share payments). The ATG can be found on www.irs.gov by searching for “ATG”.