WHY WAS THE COMMERCIAL PRINTING INDUSTRY SELECTED?

During the examination of printing companies in Georgia, a pattern of similar issues was noted. As a result, an information gathering project was started to provide the Internal Revenue Service with an chance to gain cognition of this really large manufacturing industry, to identify common areas of non-compliance, and to develop techniques and procedures to help promote compliance in the industry.

The issues most often encountered were in cost of sales, particularly work-in-process, IRC section 263A, and omission of certain direct material items from inventory. Another issues enclosed change in accounting know how (from cash to accrual), sales cutoffs, officer's compensation, and depreciation.

BACKGROUND AND Intention

The intention of this instructions is to afford the examiner an chance to gain a better understanding of the commercial printing industry, and to provide a specialized examination tool, by focusing on the printing processes and the accounting and records flow associated with the business.