News from Idaho Automobile Dealers Association

IRS materials available to promote tax benefits

The IRS has recently unveiled materials to help inform families about the deduction of sales or excise taxes paid on the purchase price of a new vehicle.
These new materials are part of a larger effort to increase the awareness and use of many tax benefits available through the American Recovery and Reinvestment Act (Recovery Act). The new YouTube videos and radio public service announcements (PSAs) help explain several tax benefits currently available to American Families.
To view the new video and audio spots, as well as additional information about the program, please visit the IRS Web site at www.irs.gov/recovery.

Fees to access Do Not Call numbers increase

Dealers are reminded that they must remain up to date on the FTC's Do Not Call Registry. The FTC recently announced increased fees for telemarketers accessing phone numbers on the National Do Not Call Registry. The first five area codes will continue to be free.

Beginning October 1, the cost will be $55 per area code (increased from $54), up to a maximum charge of $15,058 for all area codes nationwide. The cost will be $27 per area code for numbers requested during the second half of the 12-month subscription period. Telemarketers must subscribe each year for access to the registry numbers.

New IRS Memo Addresses UNICAP Compliance

The IRS Industry Director, Heavy Manufacturing and Transportation, Large and Mid Size Business Division has issued a September 15, 2009, memorandum entitled Tier III - Field Directive on the Planning and Examination of IRC � 263A issues in the Auto Dealership Industry. The memo, which is not an official pronouncement of law or the position of the IRS, provides direction to IRS field examiners on how to conduct uniform capitalization (UNICAP) audits of franchised car and truck dealers and includes an "audit tool kit." It states, in part: "In order to encourage compliance and to allow taxpayers in the auto dealership industry an opportunity to voluntarily change their methods of accounting to comply with the legal reasoning outlined in TAM 200736026, the IRS has determined that it will suspend examination of auto dealership � 263A issues effective September 15, 2009 and continuing through December 31, 2010." Another portion of the memo addresses � 263A examinations already in progress. The memo and its attachments are available at www.nada.org/regulations (see the lead item). NADA will provide additional information on this issuance after it has had an opportunity to thoroughly review these documents. Dealers should consult with their tax practitioner concerning this development

Frank Set to Scale Back Plans For Consumer Financial Agency

Rep. Barney Frank said he's prepared to make key changes to the Obama administration's proposed new consumer financial protection agency in an effort to head off some the main criticisms about its power and scope. Frank (D-Mass.) wrote to members of the House Financial Services Committee, which he leads, that he intends to exempt certain non-financial businesses from oversight by the new agency ... He added that doctors and other businesses that bill customers after a service is provided, including telephone and cable companies, also will be excluded, as will auto dealers, lawyers, providers of certain retirement and pension plans, accountants, and real estate brokers.
Source: The Washington Post