Rents

IRS IRC § 42 Audit Technique Guide — Part I (Introduction and Pre-Contact Analysis) · 2026 edition · updated 2026-07-29 · United States

The internal controls should be tested for consistency with the taxpayer's description of how rents are collected, recorded, and deposited. Examiners should trace or "walk through" common business transactions and original entries throughout the accounting system. Is there a difference between what should happen and what actually happens? Look for weaknesses in the taxpayer's

internal controls. Test the books against charges to individual tenant records. Are there points in the process where the internal controls could be compromised?

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▸Contents — IRS IRC § 42 Audit Technique Guide — Part I (Introduction and Pre-Contact Analysis)

IRS IRC § 42 Audit Technique Guide — Part I (Introduction and Pre-Contact Analysis)

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