Site Tour Not Feasible
What to do without a site tour?
In addition to documents normally requested during a desk audit such as detailed schedules, invoices, process information, etc., you may want to:
- Do an Internet search of the taxpayer and the taxpayer's industry for information such as descriptions of the manufacturing process, typical equipment used, pictures, diagrams of the manufacture process, specifications of the equipment and process, or product schematics.
- Determine which property to review. Remember materiality.
- Obtain a directory/location/department numbers of corporate facilities.
- Obtain facility use plans to verify what is performed at the site and determine if the taxpayer performs the activity elsewhere. Different sites may perform different functions (i.e., the property being used is a near-by facility);
- Obtain video tapes, booklets and leaflets from the marketing department;
- Obtain a description(s) of the manufacturing process(es) with identified MIC property.
- Request a site layout or map of the facility, which shows the location of MIC property.
- Request a picture or video showing the property in use.
- Study the facility and operations.
- Request organization chart(s) and resume(s) or job description(s) for "on-line" employee(s), i.e., an employee(s) familiar with how the asset is used. Determine who will be interviewed and arrange appointments with key personnel to have a conference call or video conference. If possible, make interview appointments on different days.
- For assets at issue, obtain the asset or serial number, manufacturer, and model number.
- Obtain copies of relevant documents.
- If you interview individuals, memorialize what was said in writing as soon as possible, including dates, names, titles, etc. Provide a copy to the taxpayer and allow the taxpayer the opportunity to respond to the interview write-up. While the write-up should be provided directly to your contact, you should request that the person interviewed also have an opportunity to review the write-up for accuracy.
- Memorialize any phone interviews as soon as possible. Identify open items and issues to discuss with the taxpayer.
- From collected information, look for potential issues such as dual-purpose property, non-qualified property, property used before or after the manufacturing process, and property used in a non-qualified activity.