Sub-Section 129, Independent Wood Producers
Internal Revenue Manual
Specialized Industry guidelines - Timber
Sub-Section 129, Independent Wood Producers
Last amended: 6-26-1978
Independent Wood Producers
(1) Some wood using industries depend primarily on their fee-owned timber and timber owned under contract for their wood requirements. Most, however, depend heavily on wood purchased from independent producers of logs or pulpwood.
(2) These independent operators are known as "gypos" in the west and simply as wood or log producers elsewhere.
(3) Some wood producers operate as "subproducers." They deliver
their production to wood "dealers" who then sell directly to the
pulpmill. This dealer system has been used extensively in the Southeast.