Hardwood Timber Industry Guide Name Audit Technique Guide›Audit Technique Guide Subtitle›Table of Contents
A. Timber Records - Form T (Timber) Forest Activities Schedule
0725 Publ 6116 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
(1) Record keeping and certain procedures related to timber account
management are essential components of the entire timber taxation process. The federal tax form that guides most timber taxation and procedures is Form T (Timber). Form T is specifically mentioned in Treasury Regulation § 1.611-3(h). Over the years, Form T has been modified to make it easier to use and to limit the types of taxpayers required to file it with their income tax return. Originally, if a taxpayer claimed a deduction for depletion of timber or for depreciation of plant and other improvements related to timber accounts or elected IRC § 631(a) treatment for the cutting of timber as a sale or exchange, the taxpayer was required to complete and attach Form T to the income tax return.
(2) In the current versions of Form T and the Form T Instructions a taxpayer
claiming a deduction for depletion of timber, making an election under IRC § 631(a) or making an outright sale of timber under IRC § 631(b) is required to
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file Form T. An exception has been added to exempt occasional timber sellers (one or two sales every three or four years) from the requirement to file Form T. However, all sellers must maintain adequate records of these transactions and other timber related activities during the year.
(3) Form T provides a convenient format for forest industry record keeping. It is
organized into five major sections or "parts." In the current version of Form T, the form and the instructions are separate documents.
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