Learn About the Great News from the IRS for Dealers on LIFO
Auto dealers using LIFO just received a significant tax savings opportunity from the IRS—and it’s available for 2007 if you act fast. This new development was just announced by the IRS on March 7, 2008 in Revenue Procedure 2008-23. You can learn all the details from Willard J. De Filipps, CPA, a leading expert on the application of the Last-In, First-Out (LIFO) method of valuing inventories for automobile dealerships in an exclusive CCH Audio Seminar on Thursday, April 24th.
According to Mr. De Filipps, right now, all you need to know about this favorable opportunity is to advise auto dealerships using LIFO not to file their 2007 income tax returns until you’ve determined whether the new single-pool LIFO election should be made for 2007.
Currently, the IRS requires auto dealerships using LIFO to maintain separate inventory pools for new automobiles and for new light-duty-trucks (14,000 lbs. and under). If the dealership is also applying LIFO to its used vehicle inventories, a similar two-pool requirement exists. Starting in calendar year 2007, the IRS will now allow a dealership to combine its two new vehicle pools into a single new vehicle LIFO pool. Similarly, the IRS will permit a dealership to combine its two used vehicle pools, one for used autos and one for used trucks, into a single used vehicle LIFO pool. This means that questions over the proper LIFO pool classification for crossovers, SUVs, and hybrids will vanish. Dealerships can make this change simply as an automatic change (with no advance IRS permission or user fees required).
If dealerships haven’t already filed their 2007 income tax returns, some of them may find significant benefits from this new single pool approach for 2007. It’s simply theirs for the taking!
Mr. De Filipps has been analyzing this development for numerous dealership LIFO clients with a wide array of LIFO facts and patterns.
Right now, all you need to do to tap into Mr. De Filipps’ expertise is to save the date, April 24, for this red-hot audio seminar. In this two-hour program, he will explain how to quickly determine if the change to use the single, combined pool method is advantageous for a dealership to adopt in its 2007 income tax return when it is filed.
What to expect from Mr. De Filipps’ interactive audio seminar:
In-Depth, Technical Discussions including…
A full analysis of this new “Vehicle-Pool Method,” including emphasis on its advantages and how dealerships can obtain them.
A discussion of the technical requirements to be considered in order to obtain the “treasure” buried in Rev. Proc. 2008-23. There is some “work” to using this new method, as this involves the combining of LIFO pools and the rebasing of indexes.
A walk-through of the procedures, including filing Form 3115 and Form 970, to properly make the change.
An understanding of the consequences if the dealership does not elect to change to the “Vehicle-Pool Method.”
Coverage of the special tax issues that arise in applying the “Vehicle-Pool Method” to used vehicle inventories (if they are on LIFO).
Practical Insights and “How to” Guidance
The benefit of Mr. De Filipps’ long experience in analyzing the impact of the alternatives and procedures with many dealers on LIFO and their CPAs. Almost every situation will be different—it’s not safe to generalize from one situation to another.
Valuable Practice Guides that show and tell you exactly how he has approached this development with his clients. These Practice Guides and sample computations will save you many hours of “reinventing the wheel.”
In his usual, comprehensive way, Mr. De Filipps will provide detailed program materials that you can study and use after the presentation. In addition, this session will allow ample opportunity for interactive questions and answers with Mr. De Filipps.
Learning Objectives
Know the advantages provided by Rev. Proc. 2008-23 and how dealerships can obtain them using new Vehicle-Pool Method.
Understand the technical requirements to use the new LIFO Method.
Be able to execute the relevant filing procedures to properly make the change.
Know the consequences if the dealership does not elect to change to the “Vehicle-Pool Method.”
Understand the special tax issues that arise in applying the “Vehicle-Pool Method” to used vehicle inventories
Who Should Attend
Auto dealership CFOs and controllers and their employees handling tax and financial matters; CPAs, attorneys and business and financial advisors involved with dealer and dealership tax compliance and planning.
Register today for this insightful program on Thursday, April 24 at 1 PM Eastern, Noon Central; 10 AM Pacific.
Willard J. De Filipps, CPA, is one of the nation’s leading experts on tax and accounting issues for automobile dealers and dealerships and a consultant to CPAs and businesses around the country on LIFO inventory implementation, changes and planning. His practical experience includes representation of LIFO applications during Internal Revenue Service audits, in Appeals channels and in technical advice proceedings, and for LIFO change requests involving the IRS National Office in Washington, DC.
Mr. De Filipps shares his understanding of dealer tax issues and LIFO in numerous tax conferences and seminars around the country and through numerous published articles. He has presented LIFO seminars since 1978 and has conducted seminars in-house for CPA firms around the country, business and trade associations, and National and State CPA societies. He is the author and publisher of Dealer Tax Watch, a quarterly update of essential tax information for auto dealers and LIFO Lookout, a quarterly newsletter with specialized coverage of LIFO news and developments.
He has organized and coordinated annual conferences for CPAs and other professionals serving the auto/truck dealership industries. Mr. De Filipps is the originator of Dealer/CPA 21 Resource Groups, which serve group members by providing technical meetings, information exchange, practice aids and other problem-solving and opportunity expanding activities. He also co-founded the AutoCPA Group, the original national organization of CPAs whose member firms specialize in automobile dealer clients.
How the Audio Seminar Works
CCH’s live audio seminars require nothing more than a telephone connection. For the single per-site fee, you can have an unlimited number of listeners at your site participate, get up to speed and in-the-know on important topics, and get special bonus publications included with the seminar. Handout materials are provided in PDF format that you can download and copy for all those who will participate in the seminar at your location.
Practice Development Tip! Invite colleagues, business referral sources, clients and prospects to your office to listen in and participate on this seminar with you. They’ll appreciate your invitation to hear directly about this important topic.
If you are unable to attend this upcoming event and would like to order a recording—or if you would like to order recordings of past CCH Audio Seminars, please visit the CCH Audio Seminar Archive Library today.
Pricing:
Site License: $249 – Registration includes one telephone connection at one location, one master set of handouts (with permission to make additional copies for the participants at your location), an unlimited number of people in one listening room can participate, and one seminar bonus publication per registered site. ($25 CPE fee additional for each person wishing to receive a CPE certificate for their participation.)
CD Recording: $249 – The CD includes an audio recording of the event and handout materials in PDF format. Includes copy of seminar bonus publication with purchase. Available one week after the live audio seminar event. (Note: CPE credit is not available for the CD version of the presentation.)
