Placer Mining Industry
IRS Audit Technique Guide
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Placer mining is a special opencut method for exploiting deposits of sand or gravel containing workable amounts of valuable minerals. Native gold is the most important placer mineral, but platinum and tin are also found in gravels. Minerals also include zircon, diamond, ruby, and other gems. The Market Segment Specialization Program (MSSP) presents this manual as a guideline for the examinations of taxpayers in the Placer Mining Industry. This guide focuses on small mining operations represented as sole proprietorships on Schedule C, but it can be adapted for partnership and corporate returns....
Placer mining is a special opencut method for exploiting deposits of sand or gravel containing workable amounts of valuable minerals. Native gold is the most important placer mineral, but platinum and tin are also found in gravels. Minerals also include zircon, diamond, ruby, and other gems. The Market Segment Specialization Program (MSSP) presents this manual as a guideline for the examinations of taxpayers in the Placer Mining Industry. This guide focuses on small mining operations represented as sole proprietorships on Schedule C, but it can be adapted for partnership and corporate returns. This text is supplemental to the Audit Technique Guide previously published and which contains in-depth discussions of issues associated with the mining industry.
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