State and Federal Tax Issues
LIFO Services
Calculate the required reasonable estimate prior to the year end for the final financial statement. We prepare the actual computation to determine the pool methodology for the vehicle inventory.
Form 8300 Review
Cash reporting to the IRS is as important as ever with the threat of intentional disregard. A complete review of the procedures in place to properly track cash reporting for the purposes of filing a 8300 form include an examination of actual cash deals, an assessment of the tracking system in place and training for employees who are involved in the sales and accounting process.
Sales Tax Compliance
A review of sales collection procedures is essential, as states have increased audit activity. Dealership must keep accurate records for both sales tax collected from customers and use tax owed on purchases when sales tax is not collected. Proper jurisdiction, use, and resale exemption certificates must be maintained by the dealership.
State Filing Review
Keeping track of the taxes, fees and assessments due can be a full time job. A check of these items and a review of the filing procedures can help to avoid any problems in the future.
Labor and Employee Regulations
Overtime, pay plans and regulatory requirements can be difficult to keep in check. A review of dealership policies and practices is a good check to make sure bad habits don’t become violations.