Absence Makes The Mind Wonder
The absence of the IRS Motor Vehicle Tax Advisor from NADA Convention in Orlando last weekend is certainly puzzling. Does it reflect a lack of interest on the part of the IRS on interacting with dealers and their CPAs?
Over the years, there have been so many times when the IRS overreacted to perceived abuses of the tax system by dealers (remember the “scare” over PORCs that fizzled after a few TAMs?). Oh, and of course, we spent 7 or 8 years fooling around with Section 263A before the IRS softened up with safe harbors. And, that reminds me, do you even recall the brouhaha over the use of replacement cost by dealers for valuing parts inventories instead of using actual cost? (That, of course, was not laid to rest until after the IRS convinced the Tax Court it was right and then realized the entire industry was using replacement cost because it was impossible to determine actual cost.)
As some of you know, I could go on and on. But the real question seems to be, wouldn’t it make sense for the IRS to put itself in a position to be better informed – sooner rather than later – on what’s going on in the industry and some of the consequent tax issues that CPAs have to deal with on a regular basis?
The absence of the MVTA was, in my opinion, a “lose-lose” situation.