Internal Revenue Service

Mobile Food Vendors: IRS Audit Techniques Guide Internal Revenue Service

All of the initial returns comprising this industry study were selected with the focus on two types of food vendors: 1. Food Catering Trucks 2. Espresso Carts. As media attention touted the potential profitability of these businesses, it was observed that many street corner operations were operating at high volumes, principally in cash, and with little or no forms of internal controls. Recognizing the potential for income underreporting, projects were initiated to identify issues, determine the levels of compliance, and to developing audit techniques to assist examiners in future examinations. This guide contains a considerable amount of data and estimates which resulted from the projects conducted. Please keep in mind that the validity of this information may need to be refined and adjusted for such factors as product mix, selling prices, costs, methods of operation, etc. based on geography, demographics, the evolution of the industry, and the mere passage of time.