Prep time given – IRS suspends the examination of accounting for certain inventory costs
Abstract: After years of many auto dealerships accounting for the costs associated with their inventories in ways the IRS considered improper, the agency has issued new instructions to its examiners on how to assess dealership compliance with Internal Revenue Code (IRC) Section 263A. In light of the accounting changes dealers may need to make to comply, the IRS has suspended examination on Sec. 263A issues during audits until Jan. 1, 2011. But this does not apply to examinations begun before Sept. 15, 2009.