The Employee Retention Credit (ERC) and Audit Risks
By Scott Lewis, CPA, MSA The IRS recently published their annual “Dirty Dozen”, a list of common scams that taxpayers may encounter. Number one on this list is the Employee Retention Credit (ERC). The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provided for an employee retention tax credit. […]
Is New Vehicle LIFO Relief Finally Here?
By Scott Lewis, CPA, MSA In 2020 and 2021, due to foreign supply chain disruptions, the production and delivery of new vehicles to auto dealerships slowed down considerably. The number of new vehicles in inventory at year-end, particularly at the end of 2021, were severely reduced from normal levels. Most dealerships that were using the […]
Inventory Price Index Computation (IPIC) on LIFO for Automobile Dealerships
By Scott Lewis, CPA, MSA If an automobile dealership has elected New Vehicle LIFO (Last-in, First-Out), chances are that they are using the Alternative New Vehicle LIFO method. The Alternative New Vehicle LIFO reserve method creates a tax deferral for the dealership. LIFO is based on rising prices and sometimes, rising inventory levels. Generally, when […]
U.S. House of Representatives Pass Build Back Better Act
By Zach Wimberger On November 19, 2021, the House of Representatives passed the Build Back Better Act (“BBBA”) for advancement to the Senate. Included in the bill are various tax provisions that have been topics of discussion for many weeks between taxpayers and their tax preparers. Since its introduction, there have been numerous changes, additions, […]