ANGUS BEEF BULLETIN EXTRA

July 7, 2021 | Vol. 14 : No. 6

The Link

Review or audit: What is the difference?

Survey data reveal producers who don’t want to enroll in AngusLinkSM or other verification programs often say it is because an audit sounds scary. Here is the deal. AngusLink does an on-site review that, frankly, is more of a herd visit. The Internal Revenue Service (IRS) does an audit.

Is there really a difference between a review and an audit? Yes. There really is.

  1. 1. The first difference is the IRS audits less than 1% of the tax returns filed. AngusLink does an on-site review on each lot of Non-Hormone Treated Cattle (NHTC)-enrolled cattle.
  2. 2. The IRS can fine you or make you pay a penalty if something isn’t correct. If your calves don’t meet the requirements for NHTC, we simply remove the verification for the claim from your certificate. We don’t charge a penalty if something is wrong. We conduct the on-site visit prior to the enrolled cattle leaving. Plus, we get as much information as possible to determine if the calf crop will qualify before sending someone to your farm or ranch.
  3. 3. About 90% of the IRS audits result in a return needing to be fixed. Less than 1% of the AngusLink reviews require any follow-up or changes.
  4. 4. An audit is an examination with the intention of instituting change. A review is an inspection of your documents and their organization by an independent body.

AngusLink’s review is like the billboard I saw the other day for Planet Fitness: “Judgment-free Zone.” We are not there to judge, but rather to document that what we see is what was submitted. Obviously, what was submitted qualifies; otherwise, we would not be at your place.

When someone from AngusLink comes to your farm or ranch, this is what we do:

  1. 1. Check the documents you sent to the office for review to know they really do exist.
  2. 2. If you enrolled in NHTC and the NeverEver3 program, we look through the feed, mineral, antibiotics, preventative vaccines and any other items in your feed room to determine if the inventory is accurate. This is a great way to learn about new products that may be of interest to you. We see lots of different things people use for the all-natural claim.
  3. 3. Look at the calves to make sure they really are still there. Plus, we see if they appear to be the age that was reported to us. We look at the calving book.
  4. 4. If you enrolled in AngusVerified, we see some of the registered Angus bulls that were used to sire the calf crop.
  5. 5. If you enrolled in Cattle Care and Handling, we go through your working facilities and go over Beef Quality Assurance (BQA) guidelines. We’ll talk about how you handle cattle and certain situations.
  6. 6. See if the AngusLink tags are in the calves’ ears or if they are still in the box.
  7. 7. Go over the paperwork to ship calves. We’ll discuss all the documents that need to be returned to our office and which paperwork goes with the truck.
  8. 8. Answer any questions you have about the program today or for the future.

If you have chosen not to enroll in any of the AngusLink Process Verified Program (PVP) claims that require an on-site review for fear of an audit, I hope this helps you feel more comfortable. Know that our reviewers are really coming for a herd visit. We like to see different management practices, handy inventions, awesome new products, and to learn how to do something new or different.

Face it, we like to look at cows, bulls and calves way more than we like to look at paperwork. However we do what we must to make sure the AngusLink program requirements are met while helping you obtain the very best value for your time spent enrolling your calves.

The video sale season is upon us. It is the perfect time to understand how AngusLink can potentially help you earn more dollars on sale day. Watch this recent AngusLink Lunch and Learn session for a more in-depth look into AngusLink.

Give us a call at 816-383-5100. Emily or I can get you started today.

Editor’s note: Ginette Gottswiller is the director of verification services for the American Angus Association.